CDPQ invests $100m in India's Azure Power
Caisse de dépôt et placement du Québec (CDPQ) has invested $100 million in Azure Power, an Indian solar panel company listed in the US.
The investment will see CDPQ raise its stake in Azure to 40%, according to a release. It is part of a larger offering that will also see the International Finance Corporation (IFC) purchase up to $50 million of shares at $12.50 each. Azure shares were trading around $12.00 at the end of the day October 17.
CDPQ first invested in Azure in 2016 as part of a private placement concurrent with the company's IPO. With the latest round it has committed $240 million to the company overall.
Azure was founded in 2008 and provides solar panels for a wide range of uses, from utility scale to rooftop generators, with a portfolio of more than 3 gigawatts across 23 Indian states. It seeks to manage the entire development and operation process, maintaining in-house engineering, procurement, and construction teams.
The company raised $61.4 million in its IPO, selling 3.4 million shares at $18 each, but the stock's performance has been mixed since then. It reached as high as $19.25 in April 2017 but dropped to around $13.00 at the end of the year. It is currently trading at an all-time low.
"Through this investment, we are reaffirming our commitment to Azure Power and our willingness to support its growth," said Emmanuel Jaclot, executive vice president of infrastructure at CDPQ. "Azure Power is a leader in the fast-growing sector of solar power in India, a priority market for CDPQ, and has a high-quality management team that possesses thorough knowledge of the industry."
CDPQ had C$308.3 billion ($236.4 billion) in global assets under management as of June 2018. Its investments in India's energy sector include CLP India, a subsidiary of China's CLP Holdings, in which the group invested INR26.4 billion ($364 million) for a 40% stake earlier this year. It also holds a minority stake in Resurgent Power Ventures, an energy-focused investment vehicle set up by Tata Power and ICICI Venture in 2016.
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