Serentica Renewables, backed by Sterlite Power, is considering selling a part of its ownership to raise approximately $300 million for its ambitious growth goals. The company intends to hire a banker to manage the sale process, as revealed by sources familiar with the matter.
According to one of the sources, who preferred to remain anonymous, the plans are in the early stages, with the appointment of the banker yet to be finalized.
Previously, Serentica secured $650 million from private equity firm KKR and obtained a $425-million loan from a consortium of international and domestic banks in January. Additionally, it secured a ₹5,600 crore debt from Power Finance Corporation (PFC) and REC, both state-run entities, last year.
The Gurugram-based company, focusing on the commercial and industrial (C&I) segment, aims to develop 4 gigawatts (GW) of renewable energy capacity, comprising 2.55 GW solar power and 1.4 GW wind power.
While a company spokesperson acknowledged the rapid growth trajectory of Serentica, they refrained from commenting on specific transactions.
The C&I segment has garnered significant investor attention recently. For instance, EverSource Capital-backed Radiance Renewables Pvt. Ltd engaged Rothschild & Co. to sell its C&I platform. Moreover, Sanjeev Aggarwal, founder of Amplus, and I Squared Capital established Hexa Climate Solutions, with the latter investing around $500 million in the venture targeting the C&I sector.
To capitalize on this growing interest, REC Power Development and Consultancy Ltd and Bharat Heavy Electricals Ltd (Bhel) joined hands to develop renewable energy projects focusing on the C&I segment.
Factors driving interest in the C&I sector include the nation’s increasing green energy trajectory, regulations allowing large power consumers to procure energy from the open market, and the implementation of Time of Day (ToD) tariff by state electricity regulatory commissions (SERCs) for large C&I category consumers.
India’s renewable energy sector has seen considerable foreign direct investment, totaling $6.13 billion from April 2020 to September 2023, according to the Department for Promotion of Industry and Internal Trade (DPIIT).
Given India’s transition toward green energy, various deals are underway, including Sekura Energy Ltd’s potential acquisition of solar projects from O2 Power, ReNew Energy Global Plc’s discussions with Sembcorp Industries Ltd, and Azure Power Global Limited’s exploration of stake sale options.
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