Global PE funds including Actis, I Squared Capital, Lone Star Funds and Canada Pension Plan Investment Board (CPPIB) have expressed their interest in the green energy business of IL&FS, reported The Economic Times, citing sources.
“Four PE investors have shown initial interest in the assets and we are talking to them… they will carry out due diligence and bids will be invited soon,” a person close to the development was quoted as saying in the report.
The development comes after the IL&FS board, headed by Uday Kotak, put the renewable energy assets on the block as part of a plan to raise funds and repay lenders, the report said. The asset sales, as per the report, is part of the IL&FS strategy to repay its lenders to whom the company owes around Rs 91,000 crore.
As per the report, IL&FS’s renewable energy business is valued at Rs 2,500 crore and has a capacity of 1300 MW. According to the report, this includes 875 MW of operational wind power assets and 104 MW of wind farms under construction. In addition, the under construction of the group will be able to generate about 300 MW.
The assets, according to the report, are spread across Rajasthan, Gujarat, Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh and Andhra Pradesh. Japan’s Orix Group, that has significant holdings in the group, also has 49 percent stake in the group’s renewable energy business, added the report.
While no comments were available from the company officials, the report stated that the assets will be sold on an individual basis, depending on location, capacity generation and long-term viability.