Private Equity investors line up to cash in on wind energy sector

Trishe Energy, the Chennai-based wind power developer is currently in talks with a number of private equity firms to raise about $100 million, which it plans to re-invest in infrastructure, including land development and power allocation.

“We are seeing a lot of interest from private equity investors, and the fund raise should be done in three or four phases,” Bikramaditya Raha, president – projects, Trishe India, said without disclosing the names of potential investors.

Trishe, a pure-play engineering, procurement, construction (EPC) developer, handles turn-key projects for enterprises looking to set up wind farms.

The transaction, which, according to Raha, should close in less than six months, is the latest one in the country’s wind energy sector, which has been seeing a sudden infusion of risk capital, as private equity funds look to increase their exposure to India’s renewable energy sector.

“The potential for growth in India is very high, taking into account government policies and the gap between demand and supply,” Raha said.

Top 5 deals in the space:

1. IFC, the private sector investment arm of the World Bank, is currently in discussions to invest a possible $130 million in INOX Renewables. The deal is a debt and equity transaction, and is expected to close soon.

2. Chennai-based Trishe Energy is in talks with a number of undisclosed private equity firms, to raise $100 million. The deal, which will be done in three to four phases, is expected to close in less than 6 months time.

3. ReGen Powertech also raised Rs 152 crore from Mcap Fund Advisors, TVS Capital and IDFC Private Equity in April 2012.

4. NSL Renewable Power Pvt. Ltd, part of the Hyderbad-based NSL Group, raised $40 million from clean energy-focused PE fund FE Clean Energy Group in July 2011.

5. Mytrah Energy India Ltd, formerly known as Caparo Energy Ltd, raised close to $20 million in mezzanine funding from PTC India Financial Services. This was preceded by IDFC investing $33.5 million, also as mezzanine funding, in the company in August 2011.

Earlier in the month, ETwas the first to report wind turbine maker ReGenPowertech raising Rs 52 crore in a follow-on round from two marquee private equity firms, TVS Capital and MCap Fund Advisors. The deal valued the four-year company at Rs 1,850 crore.

“The wind energy sector in India will continue to grow because it has achieved parity due to the rising coal and oil prices. The valuations are good, considering that we were valued at close to Rs 2,000 crore, which is quite good for a four-year old company,” R. Sundaresh, joint managing director, ReGenPowertech, pointed out.

Separately, International Finance Corp, the private sector investment arm of the World Bank, is currently in discussions with Noida-based wind farm developer INOX Renewables Ltd to invest a possible $130 million in a debt and equity transaction.
Source: ET


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