The Indian Energy Sector has seen massive investments by Private Equity and Investment Banking Groups in the West.Green focused utilities like Orient Green Power and Greenko are already listed in the public markets.Big PE firms like Blackstone,Appollo and KKR has put money into Indian electricity companies as well.Despite losses and adverse conditions being faced,this sector continues to attract money.Leap Green Energy which is backed by the family of India’s ace motor racer Narain Karthikeyan has got Rs 100 crore in funding from JP Morgan one of the biggest investment banks in the world.Green Companies in India continue to multiply as India’s renewable energy capacity grew by 20% in 2011 or around 3.5 GW mostly wind energy.However solar power is becoming an important chunk as well with solar prices falling hard.
Note I had earlier written that the best way to invest in the Indian green energy sector was through green utilities.
Moser Baer started a new Electricity Power Development company with ambitious plans.It is investing in setting up 4000 MW of coal plants and 1000 MW of assorted Hydro and Solar Plants.This company also does consultancy and coal mining according to its website.Now Blackstone has decided to gamble on India’s Power Deficit Story by investing $300 million for an undisclosed stake in the company.With investment plans of $6.5 billion and parent company sinking under loads of debt,Moser Baer Projects desperately needed equity which has been provided by Blackstone.Its previous track record in Solar and Optical Media does not inspire a lot of confidence.But India’s 8-9% Growth Rate is like a Rising Tide which will lift all sorts of Boats.Blackstone is perhaps gambling more on that rather than on Moser Baer
JP Morgan Asset Management has recently invested Rs 100 crore in Leap Green Energy Pvt Ltd, a company promoted by India’s ace motor racer Narain Karthikeyan’s family.
Leap Green owns installed capacity of 100 MW of wind assets, which is to be doubled in the current year.
According to Venture Intelligence PE Deal database, JP Morgan first invested Rs 107 crore. The investment was made into both equity and convertible debt instruments, which, when converted would give JP Morgan a majority stake. Therefore, JP Morgan has invested over Rs 200 crore in Leap Green, which describes itself as a green Independent Power Producer.
Wind Farm Developers in India put aggressive capacity plans in place (Caparo, Greenko, Genting, Techno Electric)
Wind Power in India has shown sharp growth in 2010 and looks to have a bright future with a number of wind farm developers investing aggressively to expand capacity.Wind Turbine Companies have also been putting up factories in India to catch a slice of the world’s fifth largest wind energy market.Even Chinese companies like Dongfang and Shanghai Electric have managed to win contracts from power companies like KSK Energy.Greenko one of the first Green Utilities in India is raising funds to put even more wind turbines in India while Caparo has the biggest expansion plans in place.CLP which is the largest wind energy capacity owner in India too is plowing ahead with plans to add to the wind capacity.The most surprising entry is by Malaysian casino developer Genting which has raised debt from HSBC to put up a 92 MW Wind Farm in India.