When contacted, Vishal Gupta, managing director, Bessemer Venture Partners India, confirmed the sale of stake in IEX to TVS Capital. Gupta will continue to be a director on the board of IEX even post the transaction.
Some of the other investors in the company include Aditya Birla PE, Multiples Private Equity Fund, Adani Enterprises, Jindal Power, Lanco Infra, Reliance Infra, Rural Electrification Corporation, Tata Power and lender IDFC. PTC continues to hold around 5% stake in the company .
Former Aditya Birla PE chief executive Bharat Banka acted as the sole advisor to the deal. After quitting Aditya Birla PE, Banka is advising various business houses, funds and startups. With a shareholding cap of 5% imposed by the regulator for all power generators in energy ex changes, non-energy investors are keen to invest in such entities.
According to rules, domestic com modity exchanges, stock exchanges depositories, banks, insurance com panies or public financial institutions can hold as much as 15% of the paid up capital of a commodity exchange.
Jignesh Shah-led Financial Technologies (India), one of the major shareholders of IEX, has been asked to divest up to 24.8% stake in the com pany after regulators declared it un fit to run an exchange following irregularities in operations that led to a` . 5,574-crore payment crisis at the National Spot Exchange Ltd, a group entity , in 2013.
“The current valuation will now be come the new benchmark for all future deals and the existing sharehol ders believe there is more value yet to be explored in the company ,“ said an other person involved in the deal.
With the nation’s power sector poised for expansion, IEX’s prospec ts and valuation are set to improve Many entities increasingly prefer to buy electricity on exchanges instead of entering into long-term purchase agreements with producers.