Hyderabad-based Pennar Industries Ltd has agreed to sell its stake in Pennar Renewables Pvt. Ltd to Greenko Solar Energy Pvt. Ltd, according to a stock exchange disclosure.
Though the value of the transaction has not been disclosed, the company said that the stock sale will reduce its debt by about Rs 101 crore. Pennar Industries’ consolidated long-term and short-term debt stood at Rs 296.5 crore as of 31 March 2017.
According to the company’s 2015-16 annual report, Pennar Renewables had commissioned solar power plants across three locations in Telangana with an aggregate capacity of 28 MW.
The parent company held a 99.61% stake in Penner Renewables, formerly known as New Era Enviro Ventures (Karimnagar) Pvt. Ltd.
Established in 1988, Pennar Industries manufactures precision engineering products, including cold-rolled steel strips, precision tubes, railway coaches, pre-engineered building systems and road safety systems.
Greenko Energy is one of the leading renewable energy generation companies in India. In August 2016, it had acquired the India assets of US-based Sun Edison for about $270 million.
In March 2017, its parent company, Greenko Energy Holdings Pvt. Ltd, had raised $155 million from Singapore’s sovereign wealth fund GIC and Abu Dhabi Investment Authority (ADIA). The same set of investors had pumped in $230 million into Greenko in an earlier round in 2016.
In 2016, it had raised $500 million from overseas investors through a green bond issue. As of June 2017, Greenko had commissioned solar power capacity of 1,082 MW, says a report by renewable energy consultant Bridge to India.