According to reports, IDFC Private Equity is investing Rs 80 crore more in Green Infra Ltd, a renewable energy company which it had incubated and sponsored in 2008. IDFC PE, through its funds, had earlier invested Rs 360 crore in the company, thereby taking the total commitment to Rs 440 crore. The monies will be invested in the company over a period of two months, across various renewable energy projects.
The company acquired BP India’s wind farm assets with an installed capacity of about 100MW in third quarter of 2009 and had an installed wind capacity of about 24MW then. The company had targeted an installed capacity of 300-500MW in three to five years then at the time of acquisition.
The company currently has 164 MW of operating wind farm assets under management in Tamil Nadu, Karnataka, Maharashtra and Gujarat, as well as a strong execution pipeline, according to its management team.
The company has been able to add just 40MW in a period of almost two years lagging behind its peers in capacity addition, industry sources point out. This could probably be one of the key reasons among others for the leadership changes sources added. The company has almost completely lost its early mover advantage in this space in spite of a top notch equity fund backing it .
IDFC PE-backed Green Infra is positioned as an institution which is professionally managed and it has just appointed Shiv Nimbargi as its managing director and CEO, in a much-needed move, as the company has been dabbling in all renewable energy sources with minimal operational and execution differentiators and lacklustre capacity additions. However the company has ambitious growth and capacity addtion plans that need to be followed upon.
The energy firm has also brought in Pinaki Bhattacharyya (previously a director with IDFC PE) as its CFO.
Green Infra Ltd, which has till now only raised money from IDFC PE, will hit the fundraising ground in the next six months to raise third-party institutional money. While the quantum of monies to be raised is not frozen yet, the company will require up to $150 million to achieve its target of owning and operating 1 GW of renewable energy projects by 2013, the company’s newly appointed CFO told VCCircle.
The company also has plans to be hived off as a separate entity (from IDFC PE) and get listed on Indian bourses. “We will do it as we progress and as the company scales to a size when it is ripe for a good analyst coverage and international shows,” said Raja Parthasarathy, managing director of IDFC PE.