Mumbai: Tamil Nadu-based renewable energy company Leap Green Energy Pvt. Ltd has appointed investment bank Barclays Plc to help in raising $300-400 million as it seeks to grow its portfolio, said two people aware of the development. Founded in 2006, Leap Green is promoted by former Formula 1 driver Narain Karthikeyan’s family.

“Leap Green has recently appointed investment bank Barclays to manage its fundraising efforts. They plan to raise growth capital of around $300-400 million at the holding company level, which will be used to fund expansion of the company’s renewable energy capacity and to develop the pipeline of projects that they have on hand currently," said one of the people cited above, requesting anonymity.

Leap Green has operational wind assets capacity of 751 megawatts (MW) and about 400 MW of under construction assets.

“They are going to start the fundraising process soon. They want to bring in a new investor into the firm. They will be targeting deep-pocketed investors such as sovereign wealth funds, pension funds and other large infra investors," said the second person cited above, also requesting anonymity.

V. Dev Anand, co-founder and executive director, Leap Green, did not respond to calls and text messages. Pramod Kumar, head of investment banking at Barclays India, did not respond to an email and a text message.

This is not the first time Leap Green is attempting to raise fresh capital or bring a new investor on board.

In August 2015, Mint had reported JPMorgan Asset Management Holdings Inc., the investment arm of JPMorgan Chase and Co., and an erstwhile investor in Leap Green, planned to sell half of its stake that could have fetched $200-225 million.

Last year, Mint had reported that State General Reserve Fund of Oman (SGRF) and UK Green Investment Bank Plc. (GIB) were in separate talks to acquire a stake in Leap Green.

SGRF manages the oil and gas revenues of energy-rich Oman, and has a diversified portfolio across 25 countries. GIB is owned by the UK government and finances green projects.

Earlier this year, The Rohatyn Group (TRG), a specialized asset management firm focused on emerging markets, acquired the JPMorgan Asian Infrastructure and Related Resources Opportunity (AIRRO) platform, which held the investment in Leap Green.

The AIRRO funds, overall, held approximately $750 million in Indian assets across investments spanning toll roads, thermal power, renewable energy and social infrastructure sub-sectors. The Indian renewable industry, which has seen exponential growth in the last 3-4 years, has seen several private investors take advantage of the opportunity. In June, sovereign wealth funds GIC Holdings Pte Ltd and Abu Dhabi Investment Authority (ADIA) said that they will invest a combined $450 million (around 3,000 crore) in Greenko Energy Holdings in one of the largest funding rounds by an Indian renewable energy producer.

Last week, Greenko said that it is acquiring 1.3 gigawatts (GW) of operating solar and wind assets through the acquisition of Orange Renewables and Skeiron Green Renewables.

In September, Mint had reported that Macquarie Group was keen to buy a significant stake in Sumant Sinha-founded ReNew Power Ventures Pvt. Ltd from Goldman Sachs Group Inc. In June, Mint had also reported that Kumar Mangalam Birla-controlled Aditya Birla Group, which tied up with private equity house Abraaj Group in 2015 for its renewable energy business, was seeking a new investor for the business.

Aditya Birla Renewables Ltd is a joint venture between the Birla Group and Abraaj, with Birla holding a 51% stake and Gulf-based Abraaj holding the remaining.

Last year, International Finance Corp. (IFC), the private sector investment arm of World Bank, had invested $125 million in Hero Future Energies, the renewable energy arm of the Hero Group, for an undisclosed equity stake.

Close