US investment firm Augment Infrastructure will acquire majority stakes of Warburg Pincus LLC and IFC in rooftop solar power producer CleanMax Enviro Energy Solutions Pvt. Ltd. for Rs1,650 crore. The deal value includes new investments in Mumbai-based CleanMax.
“This would involve a purchase of the stake held by Yellow Bell Investment Ltd (an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing) and International Finance Corporation (IFC) in CleanMax along with an investment of primary capital in the Company to fund its growth pipeline. UK Climate Investments (UKCI) will continue as an investor and Board member,” the firms said in a joint statement.
The transaction is an reaffirmation of growing consolidation in the commercial and industrial (C&I) segment and comes amid a growing focus on environmental, social and governance (ESG) investing.
Considering the regulatory risks over green energy contracts and their enforcement in several states, investors are increasingly looking at the C&I space as it is generally insulated from risks such as power procurement curtailment and tariff-shopping by state-run distribution companies (discoms).
CleanMax’s operating capacity has jumped from 24MW in 2015-16 to around 750 MW now. The companies portfolio includes 380MW of large-scale solar farms in Karnataka and Tamil Nadu that supply electricity to corporate customers and 220MW of solar rooftop projects.
It has also expanded its portfolio in West Asia, with a 30MW portfolio in the United Arab Emirates and is exploring further expansion in South-East Asia. It also got its first project in Thailand.
This is Augment Infrastructure’s first investment in an Indian C&I renewable energy company.
Refeence- Live Mint, Mercom India, Economic Times, Money Control