IDFC to buy Indian wind power business

The deal involves a 24 megawatt wind power facility in Maharashtra, which will become part of IDFC subsidiary Parjanya Wind Power. Financial details of the transaction will be set at a later date, according to a disclosure. Closing is expected within the next two months.

IDFC's purchase represents a relatively small part of Jindal Steel & Power; the unit was reported to have a turnover of INR201 million ($3 million) in the 2016 financial year, about 0.1% of the total turnover for the entire company. Its net worth was reported to be about INR1.1 billion, about 1% of Jindal's net worth.

Jindal has suffered in recent years due to a downturn in demand for steel from China and an increase in coal taxes, and the company has been looking to divest cash-positive assets in order to reduce its debt burden. That task has gained urgency since it defaulted on the first payment of a $150 million unsecured loan that was due in April.

In August, Jindal hired distressed asset advisory firm Capital Optima to assist with restructuring its loans and identifying other subsidiaries to divest. The company already sold a 4.1% stake in online energy trading platform India Energy Exchange to Motilal Oswal Private Equity earlier this year.

IDFC invested through its second India infrastructure fund, which closed in 2014 at $900 million. The vehicle targets core infrastructure assets covering both operational and under-construction projects with proven partnerships that have created value. Its energy investments include a 23.5% stake in gas power plant builder ONGC Tripura Power Company, which it bought for INR4.26 billion last year.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Infrastructure
• Buyouts
• India
• IDFC Private Equity
• energy
• Cleantech