Axis Private Equity delves into clean energy

The private equity arm of India’s Axis Bank is on the verge of making its fifth investment from an infrastructure fund that held its first close last year on $150 million.

Axis Private Equity is acquiring a minority stake in a local clean energy business.

In an interview, Alok Gupta, managing director and chief executive of the firm, said the investment would be completed “over the next few weeks”, but declined to disclose more details of the South India-based company specialising in hydro, solar and bio-waste energy.

The investment is aimed at helping the business scale up its production capacity.

“It is a very attractive opportunity as the company is doing well and is quite established in their field of renewable energy. Furthermore, they have licenses for more capacities which they will be implementing,” said Gupta.

He foresees the company growing approximately four times over, within the next three to four years.
This will mark the fifth investment from the Axis Infrastructure Fund, which held a first close on $150 million in April 2008. Axis is targeting $400 million for the fund’s final close, said an industry source.

The fund has thus far invested $80 million in four companies: a water treatment and sewage company, a hotel group, a oil and gas sector service provider and a rail track maker.