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Mytrah Energy buys back IDFC Alt’s stake with Piramal’s debt funding

19 September, 2017

Mytrah Energy Ltd, a renewable energy producer listed on the London Stock Exchange’s AIM segment, has raised $277 million (Rs 1,800 crore) from business conglomerate Piramal Group via non-convertible debentures, a press statement said.

The investments have been made in its subsidiaries Mytrah Energy (India) Pvt. Ltd and Mytrah Ujjwal Power Pvt. Ltd. Mytrah Energy (India) received $150 million in the form of unlisted debentures while Mytrah Ujjwal secured $127 million via BSE-listed debentures.

The company will use the proceeds to provide exit to existing investors and meet its growth capital needs, the statement said. Mytrah’s investors include private equity firms IDFC Alternatives Ltd and AION Capital, wealth manager Merrill Lynch and investment bank Goldman Sachs.

In a separate statement, IDFC Alternatives confirmed that it had exited its six-year-old investment in Mytrah Energy (India). It didn’t disclose the financial details of the transaction.

In 2011, India Infrastructure Fund I, a fund managed by IDFC Alternatives, had invested Rs 350 crore in Mytrah Energy (India) via compulsory convertible preference shares.

The fund, which has invested in 18 companies so far, has partially or fully exited nine of them. These include Essar Power, ATC India (earlier Viom Telecom), Sabarmati Gas, SMS Shivnath Infrastructure and Vijayawada Tollway.

VCCircle reported last month that IDFC Alternatives was planning to exit four companies by next year from its first infrastructure fund to return capital to its investors. Also last month, Singapore-based Sembcorp Industries Ltd agreed to buy out IDFC Alternatives from its Indian renewable energy unit for $220 million.

Ravi Kailas, chairman at Mytrah Energy, said in a stock-exchange disclosure that the latest transaction simplifies its financial structure, improves transparency and provides resources to underpin growth.

Mytrah has a portfolio of 2,000 megawatts of operational and under-development renewable power projects across nine states in the country. In an interaction with VCCircle in July, Mytrah Energy (India)’s chief executive Vikram Kailas had said the firm was considering private equity funding and setting up an infrastructure investment trust (InvIT) as options, besides an initial public offering, to raise Rs 2,000 crore in 2018.

Piramal’ bets on renewables

Piramal Enterprises has struck two deals in the renewable energy sector along with Dutch pension fund APG Asset Management.

In November 2016, the two invested Rs 500 crore in Delhi-based ACME Cleantech Solutions Pvt. Ltd. In March 2016, they committed to invest Rs 900 crore in Essel Green Energy Pvt. Ltd, the solar platform vehicle of Essel Infraprojects Ltd.

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Mytrah Energy buys back IDFC Alt’s stake with Piramal’s debt funding

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