Bio-energy firm PRESPL plans a second round series-B funding

Emerging bio-energy company PRESPL is eyeing a second spell of series-B funding from a strategic investor. In March, Neev Fund of SBICAP Ventures belonging to SBI Capital Markets had invested $5 million (₹35 crore).

PRESPL (Punjab Renewable Energy Systems Pvt Ltd) is looking at leveraging the equity investment to raise debt of ₹200 crore in the next 18-24 months.

PRESPL Managing Director Monish Ahuja told BusinessLine that the country’s commitment to cut carbon emissions and the Supreme Court order banning pet coke have opened up opportunities for company. Last fiscal the company clocked revenues of ₹35 crore and turned PAT positive, he said.

Equity requirement

He said that the money from Neev would take care of the equity requirement for two-three years. The debt would be for working capital and investments in equipment.

Around 2009, the company started off as a supplier of bio-mass to a power plant in Maharashtra and another in Punjab.

PRESPL has developed different models to use a variety of bio-mass such as cotton stock, maize residue, rice straw, Juliflora, and soya husk. It supplies bio-mass briquettes, also known as green coal, to fire industrial boilers in the place of coal and furnace oil.

Ahuja said the company also maintains bio-mass boilers and provides process steam for units that require medium/low-pressure steam. Pharma majors such as Cipla, Sun and Lupin are some of its clients.