PE-backed wind turbine manufacturer Regen Powertech is on course to raise its second round of private equity funding. The company, which is promoted by Nuziveedu Seeds Pvt Ltd, already has Everstone Capital as an investor with 33% stake.
Informed sources said the company was in talks with a few PE players for raising about Rs 200-250 crore for its further expansion plans. It has mandated E&Y as advisor. Indivision, PE fund of Everstone Capital, invested $25 million in 2007.
The Chennai-based Regen Powertech had signed a licensing agreement with Vensys Energy AG, German leader in wind energy converters (WEC) design. It has set up a manufacturing facility in Andhra Pradesh to produce 200 gearless WECs per annum of 1.5 MW capacity each. Regen's parent NSL is one among the leading seed companies in India and backed by PE giant Blackstone.
Atul Kapur, Co-founder and Managing Partner of Everstone Capital serves as the Chief Investment Officer of Regen. It is learnt that Everstone will make a possible exit next year through a proposed IPO.
Mail sent to Madhusudan Khemka, MD, Regen Powertech, did not elecit any response.
Recently, Regen has signed a pact with Indian Energy for a 50 MW wind farm in Tamil Nadu in 2 phases. The first phase consists of 11 turbines with a total capacity of 16.5MW and the second phase will consist of 22 more 1.5-MW turbines with a total capacity of 33 MW to be built in the second quarter of 2010.
The dire need for additional capital for expanding capacities in the wake of higher demand makes the power sector an attractive investment target for the PE players. In 2010, till date, about 8 deals worth about $720 million has been struck. Among the major deals include $425 million investment in Asian Genco Pte Ltd by various investors and $200 million in GMR Energy by Temasek Holdings. Since 2009, about $3.7 billion worth investment was made in 111 deals across power sector.
In 2010, Greenko Group PLC, a renewable energy generation company with focus on developing a portfolio of biomass, hydro electric and wind assets within India, received $34 million investment from TPG Capital Inc. Also, Auro Mira Energy Co. Pvt. Ltd, which is engaged in manufacturing and supplying wind energy generators, raised $10 million from International Finance Corp this year.
Soham Renewable Energy Pvt. Ltd. which focuses on various segments of renewable energy, such as hydro, solar, and wind power, had raised $19.25 million from FE Clean Energy Group Inc last year and raised $15 million from DE Shaw Composite Investments in 2008.