Business Standard

Expect 6-8 Gw of renewable projects in the market soon: Virescent CEO

- SHREYA JAI New Delhi, 11 October

Virescent Infrastruc­ture, which has floated the only infrastruc­ture investment trust (INVIT) in the Indian renewable energy sector, expects 6-8 Gw of assets to be available in the market in the next six months.

Set up in 2020, the Kkrbacked firm raised ~460 crore from foreign and domestic investors in its first round of funding last month.

The INVIT — Virescent Renewable Energy Trust (VRET) — was floated in February this year.

“The fundraisin­g was to meet the Sebi regulation­s for a privately listed INVIT, which required a minimum ~400 crore dilution and bringing in a minimum of five investors outside the sponsor KKR. We witnessed an oversubscr­iption and we had to increase the size of the offering to ~460 crore to accommodat­e the minimum investment requiremen­ts of certain investors,” Virescent CEO Sanjay Grewal told Business Standard.

The offering was led by AIMCO, one of the largest pension funds from Canada.

Grewal said the fundraisin­g and a AAA rating will help the firm reach 2 Gw target much sooner than FY24. “We are the first RE platform to get a dual AAA rating. Our AAA rating will allow us to raise debt funding from multiple sources such as banks, financial institutio­ns, pension funds, insurance firms, etc at competitiv­e rates and terms,” he said.

Grewal said there is a great opportunit­y in the Indian renewable market. “There are several types of sellers currently in the market — financial sponsors who wish to exit the RE market, conglomera­tes who have RE projects as their non-core business, corporates having de-leveraging considerat­ions and developers who work on a capital churn or a ‘build and flip’ model,” he said.

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