The promoters of Greenko Group PLC, one of India’s largest independent power producers in renewable energy space, have increased their shareholding in the AIM-listed firm by 4.5 per cent and have the option to raise it by an additional 1.3 per cent in two months.
The combined holding of the two executive directors – Anil Chalamalasetty and Mahesh Kohli – through their holding entity ACMK Enterprise Limited has increased to 13.1 per cent stake as a part of fresh share issue under a long term management incentive plan announced in 2008.
The shares have been issued after the firm hit milestones in terms of power capacity. Four years ago,Greenko had 41.5 MW of operating capacity, plus 49 MW under construction and a development pipeline of 102 MW. Since then, the operating capacity has grown to 215 MW, with over 450 MW under construction, plus a development pipeline of approximately 1,000 MW.
The promoters holding will further increase to 14.4 per cent after they bring in £5 million ($8.12 million), on or before June 28, 2012, as per a company disclosure. This is part of a larger equity fundraising issue worth £50 million ($81.3 million) announced last year.
With this, the co-founders may become the largest shareholder in the company. The key shareholders of the firm as of September 2011 include Prudential Plc (12.6 per cent) and early investor Aloe Environment
Fund (11.87 per cent). Other investors in Greenko include TPG Growth (8.57 per cent), Impax Asset Management (5.87 per cent) and Capital Group (6.27 per cent).
ACMK also has a further 5.1 million options under 2010 scheme which are subject to a target of 500MW of operational capacity with suitable profit level and milestone related to share prices.
Acquisition Of Hydro Assets
In March, Greenko acquired two hydro power assets with combined 56 MW
capacity for $57 million. The twin acquisition was funded through mix of existing cash reserves and project debt already in place.
One cluster of 32 MW in Himachal Pradesh is operational under long term power purchase agreement with local electricity board. The other 24 MW asset is located in Karnataka and is currently under development with completion targeted of 2014.
Greenko Group’s Mauritius Unit had raised $70 million from Standard Chartered Plc in a structured deal in December 2011 before which it raised $50 million from GE Energy Financial Services for its wind energy business.