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*WL Ross and Co. LLC* may invest about Rs 400 Cr in *Vijai Electricals Ltd*.
If the deal goes through, it would be second investment in Vijai
Electricals. It had earlier raised $25.8 Mn from *3i Group Plc* in Aug'08.

Vijai Electricals has appointed *IDFC-SSKI Securities* to help it raise the
funds.
  Transaction Note

Vijai Electricals - established in 1973 - manufactures power and
distribution transformers, and erects transmission and distribution lines.
For 2008-09 (refers to financial year, April 1 to March 31), on a standalone
basis, Vijai Electricals posted a net profit of Rs.2.06 Cr on net sales of
Rs.1425 Cr, against a net profit of Rs.64.75 Cr on net sales of Rs.1329 Cr
in 2007-08. It has a manufacturing facility in Hyderabad.

In November last year, Crisil downgraded Vijai's loan raising programme from
A- to BBB-.The downgrade was due to delayed payments from key customers and
increase in inventories.

WL Ross & Co. LLC generally invests in distressed firms. This would be its
third investment in an Indian company. Earlier in July'08, it invested $80
Mn in Spicejet Ltd. It has also invested $37 Mn in OCM India Ltd in Oct'06.

*PE Investment in the Power sector*

PE funds invested $532 Mn in 2009 over 21 deals. Since January 2010, TPG
Growth invested $116 Mn in Greenko Group Plc and Blackstone invested $60 Mn
in Monnet Power for a 12% stake.


-- 
Regards

Hardik Shah

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