The private equity firm made the investment alongside IL&FS Financial Services, which together have committed INR900m ($18.9m).
SGEL has four projects with a combined capacity of 35MW. SGEL will reportedly be able to expand its capacity to 250MW with this fresh capital injection by developing further projects throughout India.
Alok Gupta, managing director and CEO, Axis PE, said, “Over 60 per cent of India’s generation capacity is from thermal sources whereas renewable energy sources (excluding hydro projects above 25 MW) account for a mere 9 per cent. As per Ministry of New and Renewable Energy estimates, around 15,000 MW of additional renewable energy capacity is planned to be added during the 11th five year plan. SGEL’s proven project development and execution track record provides a strong platform to capitalise on the future growth potential in the sector and we are delighted to partner the company in its growth plans.”
Axis Private Equity held the first closing of its Axis Infrastructure Fund on INR6bn ($126.2m) last year and is looking for a final close of INR20bn ($420.6m).
The investment in SGEL marks Axis Private Equity’s fifth deal following an aggregate of INR3.2bn invested in areas such as water supply and sanitation, laying oil and gas pipelines, railway EPC and hospitality sectors.
Source: Alt Assets