Mytrah ropes in Barclays to sell a majority stake
NEW DELHI: Green energy producer Mytrah Energy India Pvt. Ltd aims to appoint Barclays Bank to sell a majority stake after a $750-million deal with private equity firm KKR fell through, two people aware of the development said.
The transaction is expected to be among the largest in India’s clean energy space, given that the Hyderabad-based company has one of the largest wind data banks in the country and an operational portfolio of 2.3 gigawatts (GW). This includes 1,700 mega watt (MW) of wind and around 535MW of solar. It also has 700MW of projects under development.
Vikram Kailas, co-founder and MD of Mytrah Energy chose not to comment. A Barclays Bank India spokesperson didn’t comment too.
The sale plan comes against the backdrop of India’s record low solar and wind tariffs and a global energy landscape focused on environmental, social and governance (ESG) investing.
Deal-making has gathered pace despite the raging pandemic and India’s clean energy space facing multiple issues such as power procurement curtailment, delayed payments, and tariff-shopping by distribution companies. Investment of ₹4.7 trillion has been made in India’s renewable energy space over the last six years, with an expected ₹1 trillion investment opportunity annually till 2030.
Mint had earlier reported about Mytrah reviving the stale sale process. In 2010, Mytrah listed on the alternative investment market (AIM) of the London Stock Exchange after raising $80 million from institutional investors. It delisted in May 2018. At one point, it was working on a domestic listing.
“Global investors are looking at this space in a big way. Mytrah Energy is exploring both assets sales and/or a majority stake sale,” said one of the two people mentioned above, both of whom spoke under condition of anonymity.
India’s wind energy generation during this year’s peak season was the worst ever because of low wind speeds, raising investor concerns. Wind energy projects are also struggling to get land and are facing transmission and connectivity-related challenges.