Axis Private Equity Limited, (Axis PE) and IL&FS Financial Services Limited (IFIN) announced investment of INR 90 crores (USD 18 Mn) in Shalivahana Green Energy Limited (SGEL). Axis PE will invest INR 54 Cr (USD 11 Mn) directly in SGEL and IL&FS Financial Services Limited will invest INR 36 crores (USD 7.5 Mn). SGEL is one of the leading renewable energy players with focus on development and operation of biomass and small hydro power projects. Currently, SGEL has four operational projects having aggregate capacity of 35 MW and is at an advanced stage of developing a number of biomass and small hydro projects at various locations across India. With the capital infusion SGEL is well positioned to expand its capacity to over 250 MW.
This is Axis PE’s fifth investment following previous investments aggregating INR 320 crs in water supply and sanitation, laying oil and gas pipelines, railway EPC and hospitality sectors.
“This investment further reaffirms Axis PE’s commitment to invest in infrastructure related companies in high growth segments such as renewable energy.” says Mr Alok Gupta, MD & CEO, Axis PE.
Further, commenting on the renewal energy space Mr Gupta said, “Over 60% of India’s generation capacity is from thermal sources whereas renewable energy sources (excluding hydro projects above 25 MW) account for a mere 9%. 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.”
We have created a dedicated institutional platform that provides access to all forms of growth capital, knowledge and best practices framework to emerging companies in the renewable energy space. Investment in SGEL reiterates IL&FS Groups commitment to green energy sector, commented Mr Hari Sankaran, Managing Director, IL&FS Limited
IL&FS Financial Services has one of the strongest renewable energy practice in the country and has been assisting companies in the renewable space for a range of services including advisory and fund raising. We are extremely happy to partner Shalivahana Group in their Renewable Energy initiatives said Mr Ramesh Bawa, Managing Director, IL&FS Financial Services Limited
Mr. M Komariah, Managing Director, SGEL, speaking on the occasion said, “We are glad that Axis PE and IL&FS have chosen to invest in our Company and look forward to receiving strategic inputs from them. It gives us great pleasure that the transaction is concluded on the World Environment Day. The investment will nurture future growth and enable the Company to rapidly scale up its business.”
About Axis Private Equity
Axis PE, a company sponsored by Axis Bank manages the Axis India Fund (AIF) with a targeted corpus of INR 2,000 Cr (USD 400 Mn). AIF will seek to invest in the equity of rapidly growing infrastructure related companies. Axis PE’s team comprises of investment professionals who have a combined experience of over 80 years and who have been investing in India for many years.
About IL&FS Group
Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading infrastructure development and finance companies. IL&FS has a distinct mandate of catalysing the development of infrastructure in the country. The organisation has focussed on the commercialisation and development of infrastructure projects and provision of value added financial services. IL&FS Financial Services Limited is the financial services arm of the IL&FS Group and is one of the foremost financial services companies in the country.
About SGEL
SGEL was incorporated in October 1992 and is involved in developing, owning and operating renewable energy projects. Currently SGEL owns and operates four renewable energy power projects having aggregate capacity of 35 MW and is in the process of developing a number of additional biomass and small hydro projects to reach capacity of over 250 MW.
