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Wind turbine manufacturer ReGen Powertech raises Rs 520 million from PEs for expansion

According to reports, ReGen Powertech, the Chennai-based wind turbine maker has raised Rs 52 crore from two marquee private equity firms, as it looks to upgrade the capacity at its manufacturing plant in Udaipur.

TVS Capital, which is backed by the TVS Group, and Summit FVCI, a fund advised and managed by existing strategic investor,  M Cap Fund Advisors, have invested Rs 37 crore and Rs 15 crore respectively in the company, a deal which values the company at Rs 1,850 crore.

The transaction, which closed late last week, will now see the former pick up a 1.95% stake in the company, while Summit will have 0.79% stake in the venture. M Cap, through Summit, will now hold a shade over 3% in ReGen Powertech.

“We have diluted around 2.81% stake for the investments. M Cap Advisors, who had already invested Rs 40 crore, have now raised the bar to Rs 55 crore, through Summit, FVCI,” R. Sundaresh, joint managing director,  ReGen Powertech told ET.

The latest capital infusion is an extension of the round of funding that the company did in December 2011, and extending to January 2012. IDFC Private Equity and M Cap Advisors had invested Rs 100 crore in that period, a transaction that valued ReGen at Rs 1,600 crore.

“Our sector is not financed through banks. Therefore internal accruals and the private equity mode is the best option for us,” Sundaresh said.

Everstone Capital, which had invested about $21 million in the company between 2007 and 2010, will now have its stake cut to 32.6% in ReGen Powertech.

The funds are to be primarily used for expanding its manufacturing capacity at its Udaipur plant, as well as for project development.

“We will be producing turbines, generators and towers for turbines at the Udaipur facility. We will make 100 towers per year, which will be then scaled up to 150 towers annually,” the joint MD said.

Promoted by Nuziveedu Seeds Group, ReGen Powertech has a strategic alliance with Vensys Energy AG, and sells its wind turbines under a licence from and under the brand name of Vensys.

Sundaresh also confirmed that the company’s plans to get listed on the bourses were on course as well, and it expected to close the current fiscal with consolidated revenue of Rs 4,000 crore, up from Rs 2,500 crore in the previous financial year.

“We have just completed the equity round, and in 12 to 15 months we will come out with an IPO. We have started working towards it. We have already secured orders worth Rs 3,000 crore and we are confident of closing the books with Rs 4,000 crore and above,” he said.

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