Step by step approach to raise the private equity investments in your solar projects
Step-by-Step Approach to Raise Private Equity Investments
The process of raising private equity investments for renewable energy projects in India involves the following steps:
- Identify Potential Investors: Conduct research to identify potential investors who are interested in investing in renewable energy projects.
- Develop a Business Plan: Develop a comprehensive business plan that outlines the project’s technical, commercial, financial, and environmental aspects. A well-structured business plan can help to attract investors.
- Pitch to Investors: Pitch the business plan to potential investors and highlight the project’s strengths, such as low-cost operations, innovative technology, and a well-structured risk mitigation plan.
- Negotiate Terms: Negotiate the terms of the investment, such as the amount of equity to be issued, the valuation of the project, the rate of return, and the exit strategy.
- Close the Deal: Once the terms are agreed upon, the investor and the company sign an agreement, and the equity is issued to the investor.
Major Private Equity Players in India
Several global and domestic private equity players have invested in Indian renewable energy projects. Some of the major private equity players in India are:
- Actis
- Blackstone
- Brookfield Asset Management
- CDC Group
- Goldman Sachs
- KKR
- Macquarie Infrastructure and Real Assets
- Warburg Pincus
Key Equity Deals Announced Between Apr 2021 and May 2022
Here are some of the key equity deals announced between Apr 2021 and May 2022:
- Total Carbon Neutrality Ventures, Schieder Electric Energy Access Asia, and Capital 4 Development Partners acquired a minority stake in Freyr Energy for Rs 180 million in Apr 2021.
- SHV Energy acquired a majority stake in SunSource Energy for Rs 18 billion in May 2021.
- Adani Green Energy Limited acquired SB Energy for $3.5 billion in May 2021.
- Actis acquired a 50% stake in Fortum’s 500 MW solar assets in India for $333 million in Jun 2021.
- Norfund and TPG Capital’s Rise Fund acquired a majority stake in Fourth Partner Energy for $125 million in Jul 2021.
- IndiGrid acquired Fotowatio Renewable Ventures’ 375 MW solar assets in India for Rs 6.6 billion in Jul 2021.
- Copenhagen Infrastructure Partners acquired a minority stake in AMP Energy for $100 million in Aug 2021.
- Augment Infrastructure acquired a majority stake in CleanMax for $222.23 million in Aug 2021.
- Torrent Power acquired a 51% stake in CESC Limited, Haldia Energy Limited, and other shareholders for Rs 7.9 billion in Sep 2021.
- Reliance New Energy Solar acquired Sterling & Wilson’s