Singapore-based Sembcorp Industries said on Wednesday that it is taking over complete ownership of its India business unit, Sembcorp Energy India (SEIL), by acquiring its remaining 5.95% stake from Gayatri Projects (GPL) for Rs 406 crore.
SEIL has more than 4,300 MW of operational and under-development coal-based and renewable energy power generation assets in the country. The acquisition will be funded through a mix of internal funds and borrowings, the company said.
SEIL is already expanding its footprint in the renewable energy sector in the country. Out of the 800 MW projects it was awarded through the SECI auctions, Sembcorp has already commissioned 607 MW, which is till date the the largest operational generating capacity among SECI wind auctions.
“The proposed acquisition will allow Sembcorp to have the flexibility as sole owner to evaluate and pursue a full range of growth opportunities in the renewables segment, while at the same time seeking the right equity window to list its India business or to pursue other capital recycling options,” the company said.
The renewable energy industry is one of the major FDI earners with the sector attracting $4.8 billion foreign capital since FY15. Prime Minister Narendra Modi announced in the United Nations General Assembly that the country aims to have 450 GW renewable energy capacity. India became the top scorer in the latest ‘Climatescope survey’ conducted by Bloomberg New Energy Finance on the back of its green energy policy framework and capacity expansions, as the country claimed 60% of Asia’s 2018 clean energy inflows in 2018.
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Source: Financial Express