IDFC-backed Green Infra acquires TVS Energy

The company's parent, TVS Motor, will sell 73.5 million shares to GIL, according to a regulatory filing.

GIL will add 59.75 megawatts of wind farms across Tamil Nadu and Maharashtra to its portfolio as a result of the acquisition. GIL currently owns and operates around 165 MW of wind assets and has another 82.5 MW in projects under construction. It also operates 10 mw of solar power in Gujarat.

S.G. Murali, chief financial officer of TVS Motor, told LiveMint that the company wanted to focus on its core activity - manufacturing of two wheelers such as bikes, scooters and motorcycles. "This business is capital-intensive. It costs INR60 million ($956,572) to put up one MW," he said.

TVS Energy has borrowings worth INR2.6 billion and the deal would help TVS Motor's consolidated borrowings come down from INR8.45 billion to INR5.85 billion.

TVS Energy posted a revenue of more than INR430 million for the 2012-13 financial year, with a INR45 million net profit.

GIL is targeting 500 MW of capacity by March 2014. The following year it expects to become a 1,000 MW firm, largely through wind and solar energy. In April, it raised nearly INR5 billion from Piramal Enterprises in debt and equity to fund its projects and expansion plans.

GIL is now in talks with investors to raise an additional $50-100 million, and is looking at further acquisitions as companies shed non-core renewable energy businesses.

IDFC PE incubated GIL in 2008 and has so far committed INR4.4 billion to the company.

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• Topics
• South Asia
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• Buyouts
• India
• IDFC Private Equity
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