Financial institutions, and private equity funds have significantly increased their activity in the Indian renewable energy market ever since the government announced aggressive policy measures to boost growth in the sector.
JP Morgan Asset Management Holdings, the investment arm of JP Morgan Chase, is reportedly planning to sell half of its 75% stake in Indian wind energy developer, Leap Green Energy, which it had acquired in tranches since 2010. Leap Green Energy claims to own an installed wind energy capacity of 300 MW, and plans to increase that to 1.5 GW in the “near term.” The company may also expand its presence in solar and hydro power projects.
The company acquired wind energy assets of 67.5 MW capacity from India’s leading real estate developer DLF Limited in 2013, spending over $40 million to acquire the wind projects.
JP Morgan is said to have invested $100 million in Leap Green Energy, and if the transaction is completed JP Morgan would reap substantial profits on its investment.
Earlier this year, SunEdison acquired Continuum Wind Energy from Morgan Stanley Infrastructure Partners for an estimated price of $600 million. SunEdison had also acquired 100 MW wind energy assets in India owned by Spain’s FersaEnergias Renovables SA. Also this year, three private equity investors — New Silk Route, Bessemer Ventures, and Argonaut Ventures — sold a 75% to 80% stake in Kiran Energy Solar Power to French energy company ENGIE for $180 million and at an impressive profit of $140-150 million.