India Business Excellence Fund – II and India Business Excellence Fund – IIA are the funds

Motilal Oswal PE invests Rs 98 cr in IEX
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New Delhi:
India Business Excellence Fund – II and India Business Excellence Fund – IIA, funds managed and/or advised by Motilal Oswal Private Equity Investment Advisors Private Limited (MOPE), has acquired 4.1% stake in Indian Energy Exchange (IEX) from Jindal Power Limited for a total consideration of Rs 98 crore.

Earlier on March 15, Jindal Power had announced the stake sale but did not disclose the details. Late last year, the Jignesh Shah-promoted Financial Technologies sold its residual stake of 5 per cent in IEX at a valuation of Rs 2,100 crore. The listed entity was forced to sell its stake in the energy exchange following a May 2014 order by the Central Electricity Regulatory Commission.

Established in 2008, IEX has a dominant market share among power exchanges in India.

Vishal Tulsyan, Managing Director and CEO of MOPE said: “It is our privilege to be part of India’s premier and largest power exchange. ‘IEX’ is a one of the best bet on the undergoing power sector reforms without taking any balance sheet risk”.

Raamdeo Agrawal, chairman, MOPE: “India is at an inflection point wherein it would graduate from a power deficiency to a power surplus scenario. As the power generation capacity and transmission capacity improves we believe that volume of power traded on exchanges will increase substantially. IEX is well poised to benefit from this transition.

As reliability of power supply improves, power exchanges, being the most transparent way of price discovery are well positioned to enhance its share from current level of 3% of total power requirement”.

MOPE Investment Advisors Pvt. Ltd is a subsidiary of MotilalOswal Financial Services Ltd. (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing two growth capital funds i.e. India Business Excellence Fund (IBEF) and India Business Excellence Fund II (IBEF II) focused on providing growth capital to mid-market companies, typically in the range of $10-25 million, focused on domestic consumption, financial services, infrastructure ancillary, and manufacturing. IBEF, launched in 2007 is a Rs 550 crore ($125 million) is fully invested in thirteen portfolio companies. IBEF is in exit phase and already made nine partial exits. In 2012, MOPE raised IBEF II, a Rs 950 crore ($160 million) growth capital fund. Currently, IBEF II is in investment phase and has made eight investments.

In addition, MOPE is also managing three real estate funds – India Realty Excellence Fund (IREF), IREF II and IREF III. IREF is a Rs 200 crore fund closed in December 2009. This fund is currently in its exit mode and has exited 4 out of 7 investments. IREF II is a Rs 500 crore fund which was closed in March 2015. IREF II is currently in investment mode and has invested across projects in MMR, Bangalore and NCR. IREF III is currently being raised with a target corpus of Rs 1,000 crore, already announced first close at Rs 500 crore.

Motilal Oswal PE invests Rs 98 cr in IEX