ReNew sells 11% stake in unit for $95 million

Synopsis

ReNew has announced the sale of an 11% equity stake in its commercial and industrial power generation division, attracting $95 million from three strategic investors: Leapfrog Investments, Emerging Market Climate Action Fund, and Carlyle AlpInvest. This transaction values the division at an impressive $850 million and underscores the vital role of the C&I sector in India's journey towards decarbonization.

New Delhi: ReNew Monday said it sold around 11% stake in its commercial and industrial (C&I) power generation power unit to three investors-Leapfrog Investments, Emerging Market Climate Action Fund, and Carlyle AlpInvest.

The new investors will collectively infuse $95 million (₹876 crore) in ReNew Green Energy Solutions, the entity housing the C&I business, according to a company release.

The deal valued the C&I unit, which caters to clients such as Amazon, Microsoft, Google, and Jindal Stainless at $850 million, said people familiar with the matter.

Also Read: Government amends rules for captive power plants

ReNew didn't disclose the size of stake bought by each of the three incoming investors. LeapFrog had the largest share of the investment, it said. ReNew had earlier sold a stake in the C&I unit to British International Investment at $1 billion valuation.

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"The C&I industry will be central to India's decarbonisation journey, and with investors like LeapFrog, we can deepen our ability to provide reliable, cost-competitive renewable power to leading businesses across sectors," said Sumant Sinha, chairman and CEO at ReNew.

Also Read: India may soften new grid-supply rules for renewable power producers

ReNew's C&I unit has commissioned renewable energy projects with a power generation capacity of 2 gigawatt. It supplies power generated from green sources to sectors such as automotive, chemicals, cement, textiles and technology.

Electricity consumption from the C&I sector forms half of India's total consumption, as per government data.

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