Aditya Birla PE invests Rs 62.5-cr in GEI Industrial Systems

Mumbai, Feb 7 (PTI) Aditya Birla Group''s private equityarm today announced an investment of Rs 62.5-crore inBhopal-based GEI Industrial Systems which manufacturescritical industrial equipment for the energy sector.

GEI will be using the proceeds for its expansion plans tomeet the growing requirements of customers in the powergeneration and oil and gas sectors, a release issued here byAditya Birla Private Equity (ABPE) said.

The investment into the 40-year-old GEI has been done byABPE''s Fund I, which has earlier invested in companies likematerial handling equipments-maker Anupam Industries andratings agency CARE, the release said.

Elaborating on the deal structure, it said thetransaction involves fresh equity infusion of Rs 75-crorewhere ABPE will subscribe to cumulative convertible preferenceshares worth Rs 62.5-crore and the promoters of GEI willsubscribe to equity warrants worth Rs 12.5-crore at the sameterms.

ABPE''s Chief Executive Bharat Banka said GEI holds a 70per cent market share in the air-cooled heat exchangers andsteam condensers category, supplying to an industry withtremendous growth prospects.

Additionally, its technology is environmentally relevant,helping customers meet the great challenge of water scarcity,Banka said in the statement.