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Hindustan Powerprojects in talks to sell assets, provide exit to Blackstone

12 September, 2016

New Delhi-based electrical power developer Hindustan Powerprojects Pvt. Ltd, formerly known as Moser Baer Projects Pvt. Ltd, has started discussions with investors to sell around 300 megawatts (MW) of solar assets through a combination of debt and equity for $300 million, which would be used for expansion and provide a partial exit to its private equity investor, Blackstone.

Mint reported that the company is talking to both financial and strategic investors and the portfolio of assets on the block has an enterprise value of almost $300 million, of which one-third is equity and the rest debt.

The company has hired investment bank JPMorgan India for the fundraise that would be used to create more power assets and provide an exit to Blackstone, the report stated, citing people aware of the development.

A company spokesperson said the news about asset sale is inaccurate and mere speculation, while Blackstone declined to comment. An e-mail query sent to JP Morgan did not elicit any response.

Blackstone invested $287 million in the company for an undisclosed stake in 2010. The report said the PE firm owns more than 30% in the company.

Hindustan Powerprojects plans to commission 7,000 MW of power by 2020 in thermal, solar and hydro. It is in an advanced stage of commissioning over 5,000 MW by 2017 of combined power assets at an estimated investment of Rs 35,000 crore ($5.15 billion). In addition, the company is developing over 6100 MW of capacity using conventional and non-conventional energy sources in India, Europe and the US, according to its website.

It has power generation assets in countries like Germany, Italy, the US, the UK and Japan as well as in Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Odisha, Punjab, Tamil Nadu, West Bengal and Uttar Pradesh in India.

In April, the company’s chairman Ratul Puri told The Economic Times that the firm may look at an IPO in 2017, depending on its funding requirement. Another report by Business Standard last month said the firm has also started looking at several financing options for funding capacity addition, by raising capital through IPO, tapping global wealth funds and infrastructure bonds for its upcoming project pipeline.

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Hindustan Powerprojects in talks to sell assets, provide exit to Blackstone

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