Greenko plc, an Alternative Investment Market (AIM) listed clean energy producer, has raised a $46.3 million in private equity funding from Global Environment Fund (GEF). Greenko is an independent power producer focusing on renewable energy generation in hydro and biomass-fired plants.
The investment has been routed through Greenko Mauritius, which has issued redeemable preferential shares to GEF. The US-based PE fund, which is investing through Global Environment Emerging Markets Fund III, will also get board two seats on
Hyderabad-based company's Mauritius entity.
The shares will be convertible up to a 30% stake in Greenko plc, which would mean a subscription price of 98 pence per share. GEF seems to be already sitting on profit already as Greenko's shares were last traded for 117 pence at AIM on Tuesday. The deal values Greenko at $154 million.
GEF, which has been investing in clean energy assets since 1990, manages over $1 billion in private equity investments. It's also setting up a South Asia Clean Energy Fund in partnership with Yes Bank, which is aiming to raise around $200 million.
Greenko is involved in development, acquisition, construction, and operation of run-of-river hydro and biomass-fired plants. It currently has 101.5 megawatts of assets under operation and another 154 MW under concession across biomass and hydro. The company is targeting 400 MW capacity by 2012 and 1,000 MW of controlled capacity by 31 March 2015.
Greenko is led by MD & CEO Anil Kumar Chalamalasetty a first generation entrepreneur who has been involved with start-ups in IT and other businesses. He co-founded Greenko with Mahesh Kolli (Joint MD & President).
The company counts amongst its non executive directors Hari Kiran Vadlamani (co-founder of KSK Power Ventur), Vivek Tandon (co-founder and general partner of Aloe Private Equity) and Narasimharamulu Pantam (former finance director of NTPC).
In September, it bought a licence for a 96 megawatt hydro project in Sikkim. Greenko also plans to expand the capacity of its smaller hydro projects from current 25 MW to 100MW. Greenko has also received backing from other private equity investors like Aloe Environment Funds and Small is Beautiful, who hold a 31.35% and 4.16% stake
respectively in the firm as of last year.