ET, sources close to the development, reported that US based Blackstone Group has acquired 7.12% equity in Monnet Ispat & Energy for USD 50 million.

As per report, the group's private equity arm Blackstone Capital Partners has purchased 4.5 billion shares of Monnet Ispat & Energy from the company's existing shareholders.

The sources said Blackstone might demand a board seat in Monnet Ispat if the stake is further raised to 10%.

The report quoted the source as saying that “Blackstone has been purchasing shares of Monnet Ispat & Steel in the open market for the last 15 days. This is an exclusive investment by Blackstone Capital Partners that is a pure private equity firm and does not invest through open market.”

The report added that with the purchase, Blackstone's investment in Monnet group has gone up to USD 110 million. Blackstone group has already made an investment of USD 60 million for 12.5% equity stake in Monnet Power Company Ltd, a subsidiary of Monnet Ispat & Energy.

(Sourced from ET)