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Piramal Enterprises, CPPIB to list India's first renewable InvIT in 6-9 months, says Ajay Piramal

Updated : May 07, 2019 08:04 PM IST

Piramal Group chairman Ajay Piramal on Tuesday said that Piramal Enterprises and Canada Pension Plan Investment Board (CPPIB) is planning to list India’s first renewable energy-focused infrastructure investment trust (InvIT) in 6 to 9 months.

Piramal Enterprises has signed an initial pact with Canada Pension Plan Investment Board to co-sponsor a $600 million renewable energy-focused infrastructure investment trust, where both the firms will act as co-sponsors of the proposed InvIT and hold up to 75 percent of the units.

In an exclusive interview with CNBC-TV18's Nisha Poddar, Piramal said, "Initial public offering (IPO) market is risky for renewable energy companies and an InvIT offers stable return from operating renewable assets."

Piramal said, "There is going to be a lot of demand for renewables in India and capacity has to be created for it, but funding sources are limited. The only source for people to set up renewables would be if they can put in whatever assets they have created in an InvIT, release some cash to create more capacity."

"In InvIT by definition, we will only take operational projects which generate cash. So, in that sense, the return will be limited but it will be steady. So, the mass of investors who come into an InvIT will be definitely different from that which would come in into an IPO," he added.
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