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Norway’s Equinor may buy into ReNew Power; KKR, General Atlantic eye PhonePe
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Norwegian state-backed energy company Equinor ASA plans to buy a substantial stake in Indian renewable energy company ReNew Power Ltd, Business Standard reported.

Citing a person aware of the development, the report said ReNew’s investors Goldman Sachs and Canada Pension Plan Investment Board (CPPIB) are looking to exit through this deal.

Equinor has presence in more than 30 countries with over 20,000 employees. The Norwegian government holds a 67% stake in the company, which is engaged in exploration, development and production of oil and gas  as well as wind and solar power.

The reported development comes at a time when ReNew Power has yet to make any headway on its planned initial public offering. ReNew had filed its draft IPO proposal in May last year and had received regulatory approval in July.

ReNew had planned to issue fresh shares worth Rs 2,600 crore in the IPO that would have also seen existing investors cumulatively sell 94.37 million shares.

Sumant Sinha-led ReNew had last year acquired rival Ostro Energy from private equity firm Actis for an enterprise value of around Rs 10,000 crore.

In another development, PhonePe, the payments arm of e-commerce major Flipkart, has received investment interest from private equity firms KKR and General Atlantic, Mint reported.

Citing two people aware of the development, the report said two of Flipkart’s investors, Chinese conglomerate Tencent and New York-based investment firm Tiger Global, are also likely to invest in PhonePe.

PhonePe is expecting a valuation of $10 billion, according to the report.

Walmart, which acquired a majority stake in Flipkart last year, is yet to decide to hive off PhonePe into a separate unit, the report said.

Meanwhile, The Economic Times reported that Canada's Brookfield may rope in some co-investors for an infrastructure investment trust (InvIT) which is acquiring East West Pipeline Ltd  for an enterprise valuation of Rs 13,000 crore ($2 billion).

ICICI Prudential Asset Management Company, the family office of the Poonawallas of Serum Institute and three or four ultra-wealthy individuals may participate in the InvIT, the report said, citing people aware of the development.

In September 2018, VCCircle had first reported that an InvIT sponsored by Brookfield was in talks to acquire a 1,400-km gas pipeline owned by a privately held company of billionaire Mukesh Ambani.

The Economic Times also said that Ambani-led Reliance Industries will buy back the asset after 20 years from the InvIT.

The Securities and Exchange Board of India is likely to give its approval for the InvIT in coming weeks, according to the report.

The gas pipeline runs from Kakinada in Andhra Pradesh to Bharuch in Gujarat. East West Pipeline had operational revenue of Rs 884 crore and posted a net loss of Rs 715 crore for the year ended March 2018.

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