Japanese investors pick 10% stake in ReNew Power

Japanese investors pick 10% stake in ReNew Power

In what marks the entry of Japanese investors in the Indian renewable energy market, its leading power company JERA Co Inc picked up a 10 per cent stake in ReNew Power Ventures Pvt Ltd. The deal size is estimated to be $200 million through the subscription of newly issued shares by JERA. With this latest round of investment, ReNew is now valued at $2 billion.

JERA is a joint-venture between two of Japan’s largest utilities companies, Tokyo Electric Power Co Inc and Chubu Electric Power Co Inc. JERA, currently, operates approximately 6 Gw of energy assets globally across North America, the West Asia and South East Asia.

“As a ReNew Power shareholder, we will seek to contribute to the company by making available technical, operational, project development, and management experience gained through our global power businesses,” said Yuji Kakimi, president of JERA.

is the first company in the country to cross 1 GW of commissioned wind energy capacity. ReNew also emerged as the largest winner in the auctions conducted by the Solar Energy Corporation of India, winning almost 10 per cent of the total capacity of 500 MW rooftop projects. The company has won the mandate to install 5 MW of capacity across the country for the Indian Railways as well.


“The equity investment is for future projects. We would now build a pipeline based on it. Around 3 GW of renewable projects are already funded and we would like to add another 1 GW during this year. We are looking at quality projects for this,” Sumant Sinha, chairman and chief executive officer of ReNew Power, told Business Standard.


“We are open to acquiring operational assets as well. We keep looking at emerging options,” said Sinha.


Ventures, an independent power producer, has over 3,000 MW of commissioned and under-construction wind and solar capacities across Delhi, Gujarat, Haryana, Punjab, Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Telangana, Jharkhand, Uttar Pradesh, West Bengal, Tamil Nadu, Himachal Pradesh and Andhra Pradesh.

ReNew Power was launched in 2011. It recently secured long-term debt financing of $390 million from Asian Development Bank and LEAP.

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The company said Sinha remains the majority stakeholder. Sinha, however, said the company would now start preparing for an initial public offer (IPO), which would take another year. Read More…

Credit By : Business standard.com

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