Piramal Enterprises and Dutch pension fund asset manager APG Asset Management will jointly invest INR 5 billion ($73 million; €68.5 million) in Delhi-based ACME Cleantech Solutions.
The loan has a tenor of five-and-a-half years and will be partially used to buy out the stakes of the company’s two existing foreign investors, French firm EDF Energies Nouvelle and Luxembourg-based EREN Renewable Energy. The two each hold 25 percent stakes in the firm. The remaining capital will be used to fund ongoing projects and to meet the firm’s working capital requirements, according to livemint.
The fresh funding will make promoter Manoj Kumar Upadhyay the whole-owner of the company and is expected to provide more flexibility for equity fundraising in the future. In addition, ACME may acquire assets that have signed power purchase agreements and are yet to start construction.
The company also plans to refinance some of its long-term debentures through another round of debt fundraising and a public issue to raise equity capital next year, ACME’s group director Nikhil Dhingra told the local press.
This is Piramal-APG’s second joint investment in the renewable energy sector after they committed INR 9 billion to finance Essel infrastructure’s solar power platform in March this year.
ACME Cleantech Solutions Limited was founded in 2003, providing energy management solutions for wireless telecommunications and alternate energy sectors in India and internationally. The company also has a strategic alliance with Samsung SDI.