Investment group Advaita Indian Energy Ventures (AIEV), plans a £50 million AIM flotation at £1 this month, as one of a recent deluge of companies and funds focused on the burgeoning Indian power generation sector. Cenkos is broker and adviser to the company, whose co-founder and non-executive director Kiran Vadlamani’s asset management company will manage its funds.

Vadlamani will aim to achieve an internal rate of return of at least 20 per cent from investing in both developing and mature companies, ‘across the energy value chain’. The board expects the fund to be fully invested within a year and has already identified a number of potential investments over which it has secured rights of first refusal.

AIEV has been encouraged by the experience of power plant developer KSK Power Ventur, whose share price has risen more than fivefold, giving a market valuation of £600 million, since the company listed in London in 2006. This Indian power trend – which has seen KSK float its own KSK Emerging India Energy Fund subsidiary for £250 million on AIM and the Channel Islands Stock Exchange and another India power peer, OPG Power Ventures, raise £65 million from London institutions – rests on India’s huge energy deficit, mooted to require £250 billion of public and private investment over the next five years.