Sterlite Power, backed by metals magnate Anil Agarwal’s Vedanta Group, on Monday announced raising Rs 725 crore ($85.5 million) for its Global Products and Solutions (GPS) business from GEF Capital Partners and ENAM Holdings.
The GPS business was hived off as part of Sterlite Power’s demerger exercise in October, making this the first fundraise for the products and solutions business since its inception.
The firm said the funds will be used for the ongoing capex expansion of the GPS business, driving strategic growth initiatives by enhancing production capabilities, accelerating new product development, and expanding presence across key international markets.
“Decarbonising transmission networks is a key part of the transition to a low-carbon economy. Further, the growth of renewable energy necessitates modernisation and upgradation of transmission networks,”said Alipt Sharma, a partner at GEF Capital Partners LLC.
In March, Sterlite Power formed a joint venture with Singapore’s sovereign wealth fund GIC to set up a new platform to develop and operate power transmission projects in India.
The Indian company will own the majority stake of 51% in the JV, while GIC will own the rest. According to The Economic Times, the two players will be setting up a $1-billion platform in which GIC will invest $500 million.
India’s renewables sector has been attracting increasing foreign investment and is among its top five industries for overseas funds, according to Reuters.
Earlier this year, India’s largest power producer NTPC Ltd entered into a $200-million loan agreement with the Japan Bank for International Co-operation, while Matrix Gas & Renewables Ltd raised Rs 350 crore ($42 million) in a pre-IPO round to accelerate the expansion of its gas business, fund acquisitions, and meet capital expenditure plans.
Separately, Gensol Engineering raised Rs 900 crore ($109 million) through convertible warrants on a preferential basis.
Other investments by GEF Capital in the power and clean energy space include Premier Energies Limited, TI Clean Mobility Private Limited, Electrodrive Powertrain Solution, Hero Motors Limited, etc.
