IFCI Venture Capital, through its Green India Venture Fund, a Rs 220 crore renewable and clean energy venture fund, has invested Rs 30 crore in Hyderabad-based Titan Energy Systems Limited, maker of solar photovoltaic modules, engineering procurement and consultancy service provider.
The investment has been made by way of equity and compulsory convertible debentures (CCDs) into the company. About 50% of the investment (Rs 15 crore) has been put via equity for a 12% stake and the remaining CCDs will be realised depending upon the performance of the company in 2012.
Titan Energy has carried out implementation of two grid connected solar PV power plant in Yalsendra, Karnataka of 3 MW capacity and in Jamuria, West Bengal of 1.5 MW capacity on turnkey basis under the MNRE policy. The company proposes to expand its current manufacturing capacity of 100 MW to 150 MW by 2012, as it envisages good growth prospects under Jawaharlal Nehru National Solar Mission (JNNSM) for development of solar energy in the country.
In its recent policy, JNNSM has made it mandatory for independent power producers to procure crystalline solar modules from domestic module manufacturers. The firm is also upbeat about the upcoming independent power producers as it hopes to capitalize its experience of EPC and also to provide high efficiency modules currently being exported to US, Europe and Germany, Ms. Poonam Garg, Investment Officer, Green India Venture Fund told VCCircle.
Akasam Consulting Private Limited, a Hyderabad based investment bank, was the sole financial advisor for the deal.
Other investments by Green India Venture Fund are Luminous Tele-infra Ltd (telecom passive infrastructure device firm), De Core science & Technologies (LED chip manufacturing company), and three companies in hydro power generation, Regent Energy Ltd., Nagarjuna Hydro Energy Private Ltd and KVM Energy.
Ms. Garg added that about Rs 83 crore has already been invested from the fund as it looks to fully deploy the remaining corpus by June 2011. The fund, which is currently in the commitment mode, is actively looking at deals essentially in the power generation space via renewable energy.
In the background of a growing economy, India’s energy demands are expected to outpace its supply. And, non-conventional energy is expected to play a big role in filling that demand gap. Not surprisingly, this segment has captured the interest of the investing class.
Recently, Bangalore based Soham Renewable Energy Pvt Ltd has attracted investor interest to raise $5 million. Amrit Jal Ventures, the holding company of Hyderabad-based Gati Group’s hydel power projects, is also looking to divest around 26% stake for raising Rs 200-250 crore. Companies like Bhilwara Energy and Greenko have already raised money in the past.
On the solar energy side, Auro Mira Energy Company Private Limited, a Chennai-based renewable energy company, raised $21 million in a second round of funding from a clutch of PE investors comprising Aureos South Asia Fund, IFC and ePlanet Ventures for a minority stake. IFC, a member of the World Bank Group, is looking at an investment of $10 million in the proposed projects of Sunborne Energy LLC, a company involved in solar power production in India, among others.