ReNew Power Ventures Pvt. Ltd is raising $200 million by selling a 10% stake to Japan’s JERA Co. Inc., as the renewable energy company continues to attract global investors to execute its expansion plans.
The deal values the company at $2 billion (Rs 13,400 crore), chairman and CEO Sumant Sinha said on Tuesday. That exceeds the Rs 8,600 crore valuation of Mumbai-listed Suzlon Energy Ltd, Sinha’s previous employer and one of India’s biggest wind turbine makers.
Sinha, a former deal-maker who was Suzlon’s COO before venturing out, started ReNew Power in January 2011. He is also the son of former finance minister Yashwant Sinha and brother of former minister of state for finance Jayant Sinha.
ReNew develops wind and solar power generation projects. It operates 1.5 GW of projects and has 1.8 GW of projects under construction.
For JERA, the deal is its first major transaction in the renewable energy sector. The deal signifies the importance to JERA of developing a balanced overseas power generation portfolio that includes renewable energy, the Japanese company said in a statement.
JERA was set up in April 2015 as an alliance between Tokyo Electric Power Company and Chubu Electric Power Company. It said it will provide technical, operational, project development and management experience to ReNew, which will issue fresh shares to the Japanese company as part of the deal.
ReNew Power had in the past raised funding from Goldman Sachs, Abu Dhabi Investment Authority, Asian Development Bank, and Global Environment Fund.
It has previously scooped up a total of $650 million in equity funding, according to VCCEdge, the data research arm of VCCircle. More than half of this has come from Goldman Sachs Principal Investments, a private equity-style investment arm of Goldman Sachs.
The company has also raised debt funding. In March last year, it secured debt financing of up to $250 million from the US government’s development finance institution Overseas Private Investment Corporation. Last month, it secured debt financing of $390 million from ADB.
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