The energy firm in sights of a global consortium
Mint. Fourth Partner Energy, which counts TPG Capital’s RISE Fund and Norway’s Norfund as investors, has a current installed green energy capacity of 1.35 gigawatt (GW), with operations in Vietnam, Bangladesh, Sri Lanka and Indonesia; and plans to reach an installed capacity of 3.5GW by 2025. It was founded in 2010 as a solar component and engineering, procurement and construction (EPC) firm.
India’s C&I segment has attracted strong investor interest, with a number of deals in the works given the regulatory landscape being supportive of the space with rules allowing large power users to source energy from the open market rather than the costlier grid. C&I projects are also shielded from risks such as power procurement curtailment by state-run power distribution firms.
Also, State Electricity Regulatory Commissions (SERCs) implementation of Time of Day (ToD) tariff for large C&I category consumers has helped sustain the investor’s interest. The latest case in point was former US vice-president Al Gore-headed Generation Investment Management’s Just Climate LLP, and Singapore’s CapitaLand Investment Ltd, besides other entities, exploring an acquisition of Radiance Renewables Pvt.
Ltd in a deal having a potential equity value of about $300 million. Also, INOXGFL Group plans to sell a majority stake in its C&I business and has mandated EY with running the sale process for the deal, which has a potential equity value of around $200 million.
In addition, Serentica Renewables, promoted by Sterlite Power, is planning to sell a minority stake to raise around $300 million and to appoint a sell-side banker to run the process. There also other large deals in play including Actis Llp’s BluPine Energy, Singapore’s Sembcorp Industries
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