Yet another Indian renewable energy IPP is looking to sell an equity stake to raise funds for expansion.
According to media reports, Mytrah Energy is looking to sell an equity stake to private equity funds with a target of raising around $300 million. A third of this funding will be used to retire mezzanine debt taken from IDFC Alternatives. The rest will be used for setting up solar and wind energy projects across the country.
Mytrah Energy managing director Vikram Kailas stated that the company is in talks with various Indian and international private equity funds, however, a partnership with a private investor cannot be ruled out either. Kailas refused to comment on the market rumors that the company may come out with an initial public offer.
The company has so far raised $825 million, which includes $175 million from the Asian Development Bank (ADB). These fundraising exercises by Mytrah Energy are targeted at large-scale expansion of its renewable energy assets.
Mytrah Energy plans to have an operational capacity of 1 GW within 12 months. The company aims to add 2 GW of solar power capacity and 5 GW of wind energy capacity over the next 5 years. The company operates a large capacity of wind energy projects but has also recently entered the solar power market. It won rights to develop a 50 MW solar PV project in Punjab last year.
Mytrah Energy is backed by some of the leading funds globally — Goldman Sachs, Apollo Funds, and Merrill Lynch International are all among the groups that have invested in the company. Mytrah Energy Limited was listed on the AIM segment of the London Stock Exchange in 2010, raising $80 million from institutional investors such as Capital Group, BlackRock, and Henderson. Since then, the company has raised about $570 million in debt to fund wind energy projects.