Greenko raises $824 m in equity funding through rights issue

Our Bureau Hyderabad | Updated on July 12, 2019 Published on July 12, 2019

Will use funds for ongoing projects and potential acquisitions

Renewable energy company Greenko Energy Holdings has signed agreements for a primary equity of $824 million, which includes a previously announced $495 million from an affiliate of GIC and by the Abu Dhabi Investment Authority (ADIA).

Post the investment, GIC will continue to remain as the majority shareholder of Greenko. Both the sovereign funds have together invested about $2.2 billion, with its founders Anil Kumar Chalamalaseety and Mahesh Kolli holding the rest of the stake.

The new capital will be used to fund the capex of existing projects and opportunistic and potential valuable acquisitions.

In the past, Greenko had closed several major acquisitions, including that of bankrupt SunEdison’s assets in India.

As a part of the funding process, Greenko has issued warrants to its founders, which will bring in additional equity for the growth of the company when they are exercised over coming months.

Anil Chalamalasetty, MD and CEO, Greenko, said: “The proposed equity commitment from the existing shareholders shows Greenko’s track record in creating long-term value to all its stakeholders. Greenko’s innovative solutions have helped to place us at the forefront of the clean energy sector.”

“Indian energy markets are transitioning from deficit markets to demand-driven contracts, requiring reliable, flexible and cost competitive energy. Greenko is focused on building integrated renewable energy assets with storage to address these markets by competing with conventional energy assets like thermal in quality, quantity and cost,” he said.

With these proposed investments, the company’s business plan will be fully funded for the next two years, according to the management.

The renewables company has developed an intelligent energy utility platform as round-the-clock flexible renewable power is expected to replace fossil fuels.

Greenko’s investment in storage projects is the first step towards this direction and is expected to deliver over 15 billion units of schedulable power generation through integrated renewable energy projects.

Greenko has achieved 4.2 GW of operational portfolio and 7 GW under construction capacity, and is funded to grow into a multi-gigawatt portfolio over the next few years.

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Published on July 12, 2019
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