The three companies eyeing Macquarie's Strides solar projects

Bank of America Corp. is running the sale process, which was launched in October.
Bank of America Corp. is running the sale process, which was launched in October.

Summary

  • Gentari, Actis and Sekura Energy Ltd, backed by Edelweiss Infrastructure Yield Plus Fund, have shown interest in Stride.

NEW DELHI : Macquarie Group’s sale of 400 megawatts (MW) solar power projects of its Stride platform has drawn interest from three entities, with the potential deal likely to have an equity value of around $300 million, signalling continued interest in India’s green energy sector.

According to two people familiar with the matter, Gentari Sdn Bhd, a subsidiary of Malaysia’s state-run Petronas; private equity firm Actis Llp; and Sekura Energy Ltd, backed by Edelweiss Infrastructure Yield Plus Fund, have shown interest in Stride.

Bank of America Corp. (BofA) is running the sale process, which was launched in October. “The NBOs (non-binding offers) for Stride’s assets are expected to be submitted shortly. Gentari, Actis and Edelweiss are evaluating the deal," one of the two people said on the condition of anonymity.

The Stride platform, or Stride Climate Investments, has more than /415MW of renewable assets in India.

Macquarie, one of the largest foreign infrastructure investors in India, has also mandated JP Morgan to sell its Green Investment Group (GIG) platform, Vibrant Energy. The proposed deal may have an equity value of around $250 million.

Spokespersons for BoFA and Actis declined to comment. Queries emailed on 21 December to the spokespersons of Macquarie Group, Gentari, Petronas and Edelweiss remained unanswered till press time.

India’s renewable energy space has witnessed considerable interest, with the sector receiving $6.14 billion of investments over the past three fiscal years till September this year, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

The country’s ever-increasing demand for power is fuelling this interest further. Power demand reached a record 239.9 gigawatts (GW) on 1 September, exceeding the 230GW expected by India’s power sector planning body, Central Electricity Authority (CEA). India has a renewable energy capacity of 179.55GW, with plans to add 50GW of renewable energy capacity annually to reach 500GW capacity by 2030.

Foreign investors have, therefore, been upbeat on the opportunities India’s green energy transition presents. In October, Gentari announced its agreement to invest in a unit of AM Green, set up by the founders of the Greenko Group Mahesh Kolli and Anil Kumar Chalamalasetty and 100% owned by them. After the $1.5-billion equity investment by Gentari, the Malaysian firm will hold 30% stake in one of the world’s largest green ammonia firms.

Gentari was set up by Petronas in June 2022 to accelerate the adoption of clean energy and build a renewable energy capacity of 40GW, supplying 1.2 million tonnes per annum of green hydrogen and setting up electric vehicle charging points across the Asia Pacific, with a focus on Malaysia and India.

More green energy deals are in the works, as reported by Mint. Ayana Renewable Power has mandated Standard Chartered to sell a majority stake of as much as 100%, targeting an equity valuation of around $2 billion. The shareholders are also seeking to raise $400 million more to finance growth.

Eversource Capital-backed Radiance Renewables Pvt. Ltd. has mandated Rothschild & Co. for the sale of the C&I (commercial and industrial) platform at an equity value of around $150 million. And Italy’s Enel Group has hired HSBC for the sale of its portfolio in a deal having an equity value of around $300 million.

In other proposed deals, ACME Group has mandated EY to sell a majority stake up to 51% in its proposed infrastructure investment trust, in a deal having an equity value of around $1.3 billion. Shell has mandated Ambit Group to conduct a valuation exercise for a minority stake sale in the operational assets of Sprng Energy group that it acquired in 2022 from Actis at an enterprise value of $1.55 billion.

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