Eversource Capital-backed Radiance Renewables Pvt. Ltd has mandated Rothschild & Co. for the sale of the platform that serves commercial and industrial (C&I) customers in a deal having a potential equity value of about $150 million, two people aware of the development said. Radiance currently has an operational portfolio of 500 megawatts (MW), and plans to build capacity to 2 gigawatts (GW) over three years.
Investors in Radiance Renewables include India’s quasi-sovereign wealth fund National Investment and Infrastructure Fund (NIIF) and the UK government’s Foreign, Commonwealth Development Organisation (FCDO).
“The sale process is to be launched shortly,” said one of the two people on the condition of anonymity.
India’s C&I segment has attracted strong investor interest, driven by the nation’s projected green energy trajectory, as well as rules allowing large power users to source energy from the open market rather than the costlier grid. C&I projects are also shielded from risks such as power procurement curtailment by state-run power distribution firms.
Recently, Amplus founder Sanjeev Aggarwal and I Squared Capital joined hands to set up Hexa Climate Solutions to cater to C&I sector, wherein the New York-based private equity fund will invest around $500 million. Also, NIIF and private equity firm Actis Llp are among four firms in fray to acquire Macquarie Asset Management’s Green Investment Group (MAM-GIG)’s platform Vibrant Energy that has a 1.5-GW C&I portfolio. An external spokesperson for Radiance Renewables didn’t respond to emailed queries. “We will not be able to make a comment on the story,” an Eversource Capital spokesperson said in an emailed response.
“We do not comment on market speculation,” a British International Investment Plc spokesperson also said in an emailed response.
Queries emailed to the spokespersons of Rothschild & Co. and NIIF remained unanswered till press time.
NIIF is sponsored and anchored by the government of India, which holds 49% interest in it. It primarily focuses on investing in core infrastructure sectors, such as transportation, energy and digital. It manages over $4.3 billion of equity capital commitments across its three funds—Master Fund, Fund of Funds and Strategic Opportunities Fund.
British International Investment Plc is also a shareholder in Ayana Renewable Power that is looking to sell a stake of as much as 100% in the green energy company, targeting an equity valuation of around $2 billion. The shareholders are also seeking to raise an additional $400 million to finance the company’s growth, as reported by Mint earlier.
