Globeleq, an Actis group power-focused fund, is believed to have shown interest in acquiring a majority stake in the three electricity generation facilities of Reliance Energy Ltd, BSES Kerala, BSES Andhra Power and Reliance Salgaocar Power Company Ltd, which Reliance Energy proposes to sell.
According to investment banking sources, Globeleq has submitted an expression of interest for the three facilities.
The due diligence process was under way, the sources added. The valuation of these facilities is pegged at a little over Rs 1,000 crore (Rs 10 billion).
When contacted, a Reliance Energy spokesperson refused to comment. E-mails sent to Arun Sen, Globeleq's executive vice-president for Asia, on Thursday and Friday did not elicit any response.
Globeleq, set up in 2002, is Actis' principal vehicle for investing in the energy sector, especially in the emerging markets of Africa, the Americas and Asia. Actis is a leading private equity fund in the UK.
If the deal works out, it will be Globeleq's first exposure to India. Reliance Energy is one of India's leading power utility company that generates, transmits and distributes electricity.