Green Infra Ltd, the independent power producer backed by IDFC Private Equity, has announced its acquisition of BP Energy India Pvt Ltd. In a separate release, BP has said that the assets were sold for an enterprise valuation of $95 million (Rs 463 crore). Of this, $37 million (Rs 178 crore) was paid in cash while the acquirer assumed the debt of $58 million (Rs 284 crore). BP Energy India holds wind energy assets of 100 MW in India, and is a unit of BP, the third largest energy company in the world. The debt part of the transaction has been funded by IDFC Bank and Axis Bank.
IDFC PE has also recently made an investment in Maharashtra Natural Gas, confirmed Raja Parthasarathy, Managing Director of IDFC PE, to VCCircle.
BP feels that its focus should be on markets like US where it can have sizeable portfolio of 20,000 MW. BP has built a wind business in the US with interests in over 1,000MW of installed gross generating capacity and more than 1,000MW gross capacity at an advanced stage of
BP Energy India has wind assets of 60 MW in Karnataka and 40 MW in Maharashtra. "BP continues to actively explore new opportunities and long-term material growth options for all its Indian businesses," the firm said in its statement. BP is evaluating a coalbed methane project in West Bengal. The firm also has a joint venture with Tata group, Tata BP Solar, which manufactures and supplies photovoltaic power systems. Another one of its business is Castrol India, supplier of automotive and industrial lubricants.
Green Infra has been backed by the second and third funds of IDFC PE with equity commitment of Rs 360 crore, of which Rs 200 crore has already been invested. The balance sheet of the firm can go up to Rs 1400 crore, including the debt component. Green Infra is 100% owned by the two IDFC PE funds.
Green Infra has been set up with an aim to build a renewable energy portfolio comprising wind, solar, biomass and small hydel projects. This firm has already set up wind farm in Tamil Nadu of around 24 MW. The transaction with BP will take the Green Infra's capacity to 124 MW. The company is aiming to build a portfolio of 300-500 MW in next three years.