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Green Infra to raise Rs 5 billion from Piramal

According to reports, renewable energy producer Green Infra Ltd is raising nearly Rs.500 crore from Piramal Enterprises Ltd in a structured deal with debt and equity components, according to a person close to the development.

“The money that is being raised will be utilized to fund the firm’s projects and its expansion plans,” said the person cited above, requesting anonymity. Mint could not ascertain the structure of the deal or stake taken by Piramal Enterprises in Green Infra.

In January, Mint reported that Green Infra was in advanced talks with investors to raise $150 million. IDFC Private equity fund-promoted Green Infra was incorporated in April 2008 and operates as an independent power producer in the renewable energy domain.

“The group is interested in this area,” said a Piramal Enterprises executive, requesting anonymity.

Green Infra’s managing director and chief executive Shivanand Nimbargi and Piramal Group chairman Ajay Piramal did not respond to Mint’s repeated calls and texts on Tuesday evening.

The funding will be separate from the $50 million debt facility that Green Infra recently received from International Finance Corporation, the private sector investment arm of the World Bank, and Standard Chartered Bank to build two solar power plants in India.

Green Infra’s plans include becoming a 5,000 MW renewable energy company by 2015 with operating assets of 3,000 MW plus 2,000 MW in development. This will largely be through wind energy, followed by hydro, solar and biomass.

It is considering going public in 2015, Green Infra’s Nimbargi had told Mint earlier.

Energy companies raised $478 million across 20 investments in 2012, according to estimates of Venture Intelligence, a Chennai-based research services firm on private company transactions.

The largest transaction in this space was Morgan Stanley Infrastructure Partners’ investment of $210 million in Continuum Wind Energy, a wind energy firm, for a majority stake.

According to the Central Electricity Authority, in fiscal 2011, India’s energy shortage was 8.5% and its peak shortfall was 9.8%.

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