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Wind energy sees some activity in India by way of asset sales

According to reports, four large transactions in wind energy have brought back some activities in the sector in India during the quarter ended September 30, according to a report complied by Mercom Capital Group.

Nagarjuna Agrichem, an Indian agrochemicals maker, sold off its entire wind power business to an undisclosed investor for Rs30 crore (~$5 million) as part of its strategy to consolidate on core business.

Goyal MG Gases, an Indian manufacturer and supplier of industrial gases, acquired an 11.2 MW wind project from DLF for Rs29.52 crore ($4.9 million).

Continuum Wind Energy, a wind project developer, backed by Morgan Stanley Infrastructure Partners has acquired DJ Energy and Uttar Urja Power Projects from Delhi based Sravanthi Group totaling 178.7 MW for an undisclosed amount.

Green Infra, a renewable energy power producer has acquired a majority stake in TVS Energy, a subsidiary of TVS MotorBSE 2.11 %, for an undisclosed amount. With the latest acquisition, Green Infra has added 59.75 MW of wind farms across Tamil Nadu and Maharashtra, taking its operating capacity to 377 MW.

Nevertheless, Wind venture capital (VC) funding dropped slightly to $135 million compared to $210 million in Q2 2013 globally. Total funding in the wind sector came in at $5.6 billion in Q3 2013, including VC funding and other equity financings, debt financings and announced project funding deals.

Mainstream Renewable Power, an independent renewable energy project developer, raised $133 million from Marubeni Corporation making it the largest VC deal this quarter. Brazilian utility Cemig’s $621 million investment in project developer Renova Energia, and the $52 million raised by wind developer Rabbalshede Kraft, were the other equity financing deals this quarter. Large-scale project funding in Q3 2013 totaled $3.7 billion in 28 deals compared to $3.2 billion in 24 deals in Q2 2013. There were a total of 59 investors that participated in project funding deals this quarter.

“With the capital markets thawing and renewable energy industry maturing – especially wind and solar – we are seeing more IPO activity,” commented Raj Prabhu, CEO and Co-Founder of Mercom Capital Group, llc.

This quarter Mercom recorded three IPOs, one each in the United States (Pattern Energy), Canada (TransAlta Renewables) and Brazil (CPFL Renovaveis), resulting in almost $1 billion raised.

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