Deep Industries has executed the definitive documents for the proposed primary capital investment by Tridevi Capital Partners (I) LP (Tridevi) in its subsidiary, Prabha Energy (PEPL). The investment shall be made through subscription of compulsorily convertible debentures, which shall represent 40% equity stake in PEPL on fully diluted basis upon conversion in equity shares, for cash consideration of $20 million at a total valuation of PEPL at $50 million. The consummation of the transaction is subject to fulfillment of the customary conditions precedent.
This investment is possibly the first private equity investment in the Coal Bed Methane sector in India and also possibly the first project based investment in Oil and Gas sector in India. The funds invested would primarily be utilized for capital and operating expenditure for the development and production of natural gas from the coal bed methane block located in North Karanpura Coalfield(s) in the state of Jharkhand. PEPL holds 25% participating interest in the said block.
Mazars India acted as the financial advisor and Krishnamurty & Co. (K Law) acted as legal counsel for PEPL. Luthra & Luthra Law Offices acted as the legal counsel for Tridevi.
| Company Name | CMP |
|---|---|
| ONGC | 280.70 |
| Oil India | 449.80 |
| Jindal Drilling&Inds | 525.80 |
| Deep Industries | 456.75 |
| Asian Energy Service | 297.55 |
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