New Delhi | Mumbai: An investor group led by the International Finance Corporation (IFC) is looking to buy a 30% stake in ReNew Power's commercial and industrial (C&I) power generation unit, according to people briefed on the matter.
IFC, an arm of the World Bank Group, could plough about $250 million into the unit along with a co-investor, they said. The proposed investment could peg the equity value of the unit, which supplies renewable power to customers such as Amazon and Microsoft, at $800 million, they added.
Several commercial users are turning to renewable energy suppliers to lower their fuel bills and meet decarbonisation goals.
The proposed investment aligns with IFC's priorities of backing businesses with positive social or environmental impact. However, the deal could face delays as ReNew's management prioritises delisting the company's parent ReNew Energy Global Plc from Nasdaq, according to multiple sources. Till then all other strategic transactions are on hold, they said.
ReNew founder Sumant Sinha along with Masdar, Canada Pension Plan Investment Board and Platinum Hawk have announced an offer to take the US-listed parent private.
IFC and ReNew Power did not respond to ET’s queries on the matter.
Gurugram-based ReNew’s C&I unit has set up 2 gigawatts (GW) of electricity generation capacity for commercial users. The contracts are structured in a way that typically requires the user to make an investment in a captive power unit that generates electricity exclusively for the entity.
As of March 31, the company’s overall portfolio consisted of 17.3 GW of wind and solar power projects. This compares with 13.5 GW as of March 31, 2024. The C&I portfolio is a sub-component of its total power generation capacity.
The company has mobilised capital worth $680 million through the sale of assets, divestment of minority stakes and forming joint ventures over the last 36 months.
Some of its recent deals include the sale of a 51% stake in Karnataka-based Koppal Narendra Transmission Ltd together with a 300 MW solar project in Rajasthan to KKR-sponsored IndiGrid for Rs 2,100 crore. It also sold a portfolio of rooftop solar projects of 138 MW capacity to TPG Capital-backed Fourth Partner Energy for Rs 672 crore.
“Going forward, the group is expected to mobilise capital through complete asset sale and selling minority stake to strategic partners in various assets and some of the other key projects like module manufacturing, C&I sub-holdco among others,” said a recent CARE Ratings report. ReNew posted a total income of Rs 10,907 crore ($ 1.27 billion) in FY25. The company website says it’s among the top seven renewable power producers globally. It posted a net profit of Rs 459 crore in FY25.
IFC, an arm of the World Bank Group, could plough about $250 million into the unit along with a co-investor, they said. The proposed investment could peg the equity value of the unit, which supplies renewable power to customers such as Amazon and Microsoft, at $800 million, they added.
Several commercial users are turning to renewable energy suppliers to lower their fuel bills and meet decarbonisation goals.
The proposed investment aligns with IFC's priorities of backing businesses with positive social or environmental impact. However, the deal could face delays as ReNew's management prioritises delisting the company's parent ReNew Energy Global Plc from Nasdaq, according to multiple sources. Till then all other strategic transactions are on hold, they said.
ReNew founder Sumant Sinha along with Masdar, Canada Pension Plan Investment Board and Platinum Hawk have announced an offer to take the US-listed parent private.
$680 Million raised over last 36 months
ReNew’s founder Sumant Sinha along with Masdar, Canada Pension Plan Investment Board and Platinum Hawk have announced an offer to take the US-listed parent private and buy out all public shareholders.IFC and ReNew Power did not respond to ET’s queries on the matter.
Gurugram-based ReNew’s C&I unit has set up 2 gigawatts (GW) of electricity generation capacity for commercial users. The contracts are structured in a way that typically requires the user to make an investment in a captive power unit that generates electricity exclusively for the entity.
As of March 31, the company’s overall portfolio consisted of 17.3 GW of wind and solar power projects. This compares with 13.5 GW as of March 31, 2024. The C&I portfolio is a sub-component of its total power generation capacity.
The company has mobilised capital worth $680 million through the sale of assets, divestment of minority stakes and forming joint ventures over the last 36 months.
Some of its recent deals include the sale of a 51% stake in Karnataka-based Koppal Narendra Transmission Ltd together with a 300 MW solar project in Rajasthan to KKR-sponsored IndiGrid for Rs 2,100 crore. It also sold a portfolio of rooftop solar projects of 138 MW capacity to TPG Capital-backed Fourth Partner Energy for Rs 672 crore.
“Going forward, the group is expected to mobilise capital through complete asset sale and selling minority stake to strategic partners in various assets and some of the other key projects like module manufacturing, C&I sub-holdco among others,” said a recent CARE Ratings report. ReNew posted a total income of Rs 10,907 crore ($ 1.27 billion) in FY25. The company website says it’s among the top seven renewable power producers globally. It posted a net profit of Rs 459 crore in FY25.