Singapore-based Sembcorp Utilities will pay Rs 1,051 crore to buy a controlling stake in Green Infra, a leading wind power producer set up by IDFC PE funds.

The deal values Green Infra at over Rs 4,400 crore, says a press release from Green Infra.

Green Infra has close to 516 MW of wind power, which is set to increase to 700 MW in a few months, and 35 MW of solar.

Two funds of IDFC-PE have invested in Green Infra – funds II and III. They hold one third and two-thirds of the equity. This transaction will result in IDFC Private Equity Fund II exiting completely and IDFC Private Equity Fund III (“Fund III”) continuing  to hold a minority stake in the company with a secured path to exit, including through an IPO . The investment marks Sembcorp Group’s entry into the fast growing renewable energy sector in India. 

The Piramal group and the UK-based fund, CDC, have also invested in Green Infra, in the form of convertible debt. These will now be converted into equity and as such, Sembcorp will end up with a majority, sources said.

 

Green Infra has grown its assets also by acquisition. In 2009, it bought over 100 MW of the wind assets of BP (British Petroleum), and last year, it purchased 60 MW of the TVS group.

 

Girish Nadkarni, Partner, IDFC Alternatives has observed in the press release that the renewable energy sector is at an inflection point and “it is the right time to partner with a large multi-national utility like Sembcorp to take the Company to the next level of growth. IDFC Alternatives will work jointly with Sembcorp to capitalise on the immense growth potential of the sector.”

 

Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. It has over 7,200 megawatts of gross power capacity and over eight million cu.m of water per day in operation and under development, the company’s website says.

 

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