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TVS pays $12.5m for Bessemer IEX stake

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TVS Capital has paid INR810 million ($12.5 million) for a 4% stake in Indian Energy Exchange (IEX) held by Bessemer Venture Partners.

The purchase increases TVS' holding in IEX to 7%, following its purchase of a 3% stake last month, also from Bessemer. It comes after TVS' earlier attempt to lead a consortium to buy the 26% stake held by Financial Technologies India (FTIL) ended with FTIL cancelling the sale agreement and selling a smaller stake to a different consortium in June.

IEX is the world's largest energy exchange, with more than 3,000 participants, and TVS believes the potential for growth is strong due to climbing energy demand in India's economy, according to a Business Standard story linked from TVS' website. As part of the investment, TVS Director Puneet Dalmia will also join the board of IEX.

FTIL originally agreed to sell its stake to the TVS-led consortium in 2014, after a regulatory ruling that forbid it holding stake in a stock exchange due to credit problems with a subsidiary. Following the collapse of that agreement, the firm sold off its shares in several separate transaction, completing its exit last week with Multiples Alternative Asset Management-backed Milltec buying the remaining 5.5% stake.

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