Aditya Birla PE invests Rs 62.5 cr in GEI Ind Systems

Aditya Birla Group's private equity arm today announced an investment of Rs 62.5 crore in Bhopal-based GEI Industrial Systems which manufactures critical industrial equipment for the energy sector.

GEI will be using the proceeds for its expansion plans to meet the growing requirements of customers in the power generation and oil and gas sectors, a release issued here by Aditya Birla Private Equity (ABPE) said.

The investment into the 40-year-old GEI has been done by ABPE''s Fund I, which has earlier invested in companies like material handling equipments-maker Anupam Industries and ratings agency CARE, the release said.

Elaborating on the deal structure, it said the transaction involves fresh equity infusion of Rs 75 crore where ABPE will subscribe to cumulative convertible preference shares worth Rs 62.5 crore and the promoters of GEI will subscribe to equity warrants worth Rs 12.5 crore at the same terms.

ABPE''s Chief Executive Bharat Banka said GEI holds a 70% market share in the air-cooled heat exchangers and steam condensers category, supplying to an industry with tremendous growth prospects.
Additionally, its technology is environmentally relevant, helping customers meet the great challenge of water scarcity, Banka said in the statement.