Singapore-based Sembcorp Industries will acquire a 28 per cent stake in its Indian unit, Sembcorp Green Infra (SGI), from private equity firm IDFC Alternatives for ₹1,410.2 crore ($220 million).

Following the acquisition, Sembcorp will become the sole owner of SGI. In February 2015, Sembcorp Industries acquired a 60 per cent stake in SGI for about ₹1,060 crore, marking its entry into India’s renewable energy market. This was gradually increased to 72 per cent by mid-August 2017.

“Buying IDFC’s stake in SGI reaffirms Sembcorp’s commitment to a long-term presence in India.

“The deal will allow us to drive SGI’s growth as the 100 per cent owner, and increase our investment in a wind and solar generation portfolio that complements our thermal power assets in the country,” said Neil McGregor, Group President and Chief Executive Officer at Sembcorp Industries.

“Strengthening our investment in renewables will also help us stay abreast of advances in greener power generation, and will enable us to deliver electricity to customers in an increasingly sustainable manner,” he added.

The acquisition will be funded through internal funds and borrowings, with the deal expected to be completed in the first quarter of 2018. Sembcorp is buying the stake held by IDFC Private Equity Fund III.

SGI, a renewable energy player in India with a presence across seven States, was awarded 250 MW in the country’s first national wind power tender earlier this year.

Power capacity SGI has close to 1,200 MW of wind and solar power capacity in operation and under development.

“With the far-reaching energy reforms and electrification underway in India, there is a demand for both renewable and thermal power in the country.

“Sembcorp’s acquisition of IDFC’s stake in SGI strengthens our position as a reliable provider of clean and low-cost power to support India’s growing energy needs,” said Vipul Tuli, CEO & Country Head of Sembcorp India.

rajesh.kurup@thehindu.co.in

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