SCPE exits India power business via buyback

The size of the transaction has not been disclosed, but according to a statement SCPE is set to make a 2x return on its original INR5 billion ($83 million) investment. Sterlite Power will own 100% of the company following the purchase of SCPE's 28.4% stake.

SCPE's 2014 commitment was said to be the first foreign investment in India's power transmission sector; until that point, most overseas players had focused on power generation. At the time Sterlite Power had completed three projects in India and three more under construction. It has since expanded its portfolio to 15 completed projects in India and Brazil, totaling more than 10,000 kilometers.

Sterlite Technologies supplies fiber optic infrastructure, power conductors and power cables to a network of global customers through local operations in India, China, and Brazil. The company reported INR24 billion in revenue for the year ended March 2017, up from INR22 billion the year before. Over the same period, net profit fell from INR1.8 billion to INR1.4 billion.

SCPE is the principal investment arm of Standard Chartered Bank, and provides expansion capital and acquisition finance to companies with principal operations and management in Asia, Africa or the Middle East. It also participates in management buyouts.

SCPE recently relaunched an effort to spin-out its team and the remaining $1 billion in private equity assets on its balance sheet into an independent entity. This is consistent with the parent company's objective to exit the principal investment business – although it indicated that new investments would be made on a selective basis.

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• Topics
• South Asia
• Infrastructure
• Buyback
• India
• Standard Chartered Private Equity
• Exit
• energy