Indian conglomerate Piramal Group has invested approximately $277 million in Mytrah Energy, one of the largest independent renewable energy producers in India, through non-convertible debentures, taking over other investors’ holdings in the firm.
The Piramal investment replaces existing investments held by IDFC Alternatives’ India Infrastructure Fund, AION Capital, Merrill Lynch and Goldman Sachs, with the remaining proceeds to be used as growth capital for the company. The non-convertible debentures, with a seven-year tenor, are injecting $150 million and $127 million respectively into Mytrah Energy (India) Private and Mytrah Ujjwal Power Private.
For IDFC’s IIF, which had originally invested 3.5 billion rupees ($54.5 million; €45.5 million) in the form of compulsory convertible preference shares in Mytrah Energy, Piramal’s entry allowed it to exit for 9.02 billion rupees, generating an 18 percent return, according to sources familiar with the matter.
“For IIF, this was a landmark structured investment and one of its largest early-stage bets in the sunrise renewable sector,” said IDFC.
“The IIF backing to our company at a ‘start-up stage’ has gone a long way in building a sustainable platform,” added Ravi Kailas, chairman of Mytrah.
The early investment helped the company grow rapidly from an asset base of about 50MW to more than 500MW over three to four years and subsequently reach a 2GW base of operating and under-construction assets. In addition to its 2GW portfolio, Mytrah also has one of the largest wind data banks in the country, with more than 200 wind mast locations across India.