Nine percent stake in Avantha Power & Infrastructure (APIL) has been acquired for two hundred and seventeen crores of rupees by the leading American private equity firm Kohlberg Kravis & Roberts (KKR).

According to an investment banker the American private equity firm has received six decimal four crores of equity shares at thirty four rupees per share from APIL which is a power segment of the Avantha group.

The person went on to say that the transaction done has valued the firm at two thousand four hundred and fifty crores of rupees.

APIL has plans to raise a sum of one thousand two hundred and fifty crores from the market via an initial public offering (IPO). According to the official the divestment to the US equity firm is a placement prior to the IPO.

As per norms of the company no one is allowed to make any statement when the firm is in the process of raising a fund through public offering and adhering to that no spokesperson of APIL agreed to comment. Even KKR official denied commenting on the matter.

KKR invested for the fourth time so far spending in the tune of one billion dollar for the earlier three transactions. It purchased Aricent in 2006 which is a technology services company. It also bought Café Coffee Day and Dalmia Cement (Bharat).

APIL will be entering the capital market in November to raise a sum of one thousand crores of rupees. Sebi or the Securities and Exchange Board of India have given them approval for the same. According to another investment banker involved with the IPO since KKR purchased shares at Rs thirty four per share the price of the issue in the IPO will be same.