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Global Environment Fund backs India's Shakti Pumps

  • Andrew Woodman
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Global Environment Fund (GEF) has agreed to invest INR450 million ($7.4 million) in Indian submersible water pump manufacturer Shakti Pumps.

According to a regulatory filing, the investment will be made via an issue of compulsory convertible preference shares (CCPS). Through its subsidiary - AF Holdings - the GP will subscribe to 1.5 million CCPS at INR300 a share.

GEF is expected to hold an 8.9% share of the diluted capital base upon conversion of the CCPS. Shakti has also announced the conversion of 750,000 warrants held by its promoters into shares.

Established in 1982, Shakti manufactures submersible pumps, submersible motors, vertical multi-stage centrifugal pumps and domestic water pressure booster pumps. It also makes solar pump sets that run on metered electricity and solar panels.

GEF was set up in 1990 and focused exclusively on investments related to energy, the environment, and natural resources. The firm has about $1 billion in assets under management and more than 30 investment professionals based in its offices in Mumbai, Washington, Beijing, Johannesburg, Cape Town and Sao Paulo.

In July, GEF invested $140 million in Indian renewable energy producer ReNew Power Ventures alongside Asian Development Bank (ADB) and existing investor Goldman Sachs.

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