Wind farm operator Indian Energy has raised £9.75 million ($16 million; €11 million) via a placing of its shares to trade on the London Stock Exchange’s Alternative Investment Market (AIM).
Each new share was issued at 80 pence each, giving Indian Energy a market capitalisation of about £20 million. After the placement, the issue represents a roughly 48 percent stake in the company.
Indian Energy presently owns and operates a 24.8 megawatt wind farm at Gadag, in Karnataka, south India. The company plans to build a portfolio of Indian wind farms with an annual installed generating capacity of 300 megawatts by the end of the 2012/2013 financial year.
The capital will be used to acquire additional wind power assets and will also be used as the company’s working capital for the next two years.
Currently, the Indian government is aiming for 10 percent of the country’s power to be derived from renewable energy sources by 2012 and 20 percent by 2020, the company said.
As the government is focused on meeting the gap in demand, a lot of private players will be entering power generation and distribution over the next three to five years, until the demand and supply gap is met, according to Balaji Srinivas, a managing partner at emerging market specialist Aureos.
In the last month, Indian power companies such as Adani Power and NHPC have met with strong responses when they raised equity from domestic capital markets.