Bangalore-based Soham Renewable Energy India Pvt Ltd, which owns hydro-electric power projects, has raised Rs 125 crore in private equity investment from the Macquarie SBI Infrastructure Fund (MSIF). The investment is part of a total commitment of Rs 375 crore for the current and future projects to be implemented by the Soham Group.
Soham Renewable Energy, holding company of the Soham Group, had previously raised private equity funding from the DE Shaw group besides the funding from FE Clean Energy at a project level.
Incidentally, Soham has already constructed and commissioned two hydro-electric power projects and is working on developing five more projects. With the investment from SBI-Macquarie, Soham will look at acquiring licences, as well as partly constructed and fully commissioned projects.
The company is also tying up debt from the State Bank of India, ICICI, Andhra Bank, Axis Bank, IDBI, Syndicate Bank, etc. It hopes to complete the projects in hand and go through with the acquisitions by FY14, a company statement adds.
MSIF is managed by a joint venture between the State Bank of India (SBI) and Macquarie Capital IFC, a member of the World Bank Group and a cornerstone investor in the joint venture.
This will be the first renewable energy deal by the PE firm, which is investing through a $1.2 billion fund. SBI-Macquarie has invested in thermal power projects of Moser Baer and Adhunik Power and Natural Resources, besides telecom tower firm Viom Telecom and GMR Airports.
Private equity investments in India’s renewable energy segment has taken a giant leap in 2011, with the deal volume doubling and the deal value increasing more than fivefold, reaching a record numbers in the backdrop of large deals.