Green energy producer Mytrah Energy India Pvt. Ltd is looking to appoint Barclays Bank to sell a majority stake after a $750-million deal with private equity firm KKR fell through, two people aware of the development said.
The transaction is expected to be among the largest in India’s clean energy space, given that the Hyderabad-based firm has one of the largest wind data banks in the country and an operational portfolio of 2.3 gigawatts (GW). This includes 1,700 megawatts (MW) of wind and around 535MW of solar. It also has 700MW of projects under development. Vikram Kailas, co-founder and managing director of Mytrah Energy, chose not to comment. A Barclays Bank India spokesperson also declined to comment.
The sale plan comes against the backdrop of India’s record low solar and wind tariffs and a global energy landscape focused on environmental, social and governance (ESG) investing.
Deal-making has gathered pace despite the raging pandemic and the clean energy space facing multiple issues such as power procurement curtailment, delayed payments and tariff-shopping by distribution companies. Investments of ₹4.7 trillion have been made in India’s renewable energy space over the past six years, with an expected ₹1 trillion investment opportunity per year till 2030.
Mint had earlier reported about Mytrah reviving the stale sale process. In 2010, Mytrah got listed on the alternative investment market (AIM) of the London Stock Exchange after raising $80 million from institutional investors. It delisted in May 2018. At one point, it was working on a domestic listing.
“Global investors are looking at this space in a big way. Mytrah Energy is exploring both assets sales and/or a majority stake sale,” said one of the two people mentioned above, both of whom spoke under the condition of anonymity.
India’s wind energy generation during this year’s peak season was the worst ever due to low wind speeds. Wind energy projects are also struggling to get land and are facing transmission and connectivity-related challenges.
India has been trying to rejig its energy mix in favour of green energy sources and has become one of the top renewable energy producers globally, with a plan to achieve 175 GW by 2022 and 450GW by 2030 as part of its climate commitments.
Of this, while 89 GW has been installed, 48 GW is under implementation and another 26 GW is being bid out.
Source: Mint