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MCap, IDFC invest $20m in ReGen Powertech

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Subbu Subramaniam, who spun out from Baring Private Equity Partners India three years ago to form MCap Fund Advisors, has backed ReGen Powertech in his first pure private equity deal. MCap’s previous investments were PIPE deals for companies including Jyothy Laboratories and City Union Bank.

MCap and the private equity arm of Infrastructure Development Finance Corp. (IDFC) have together committed INR1 billion ($20 million) to wind turbine manufacturer ReGen. The transaction values the company at INR16 billion, The Economic Times reported.

"Baring was among the first funds to invest in a renewable energy company, called Auro Mira. I have seen the sector grow in the last five years," said Subramaniam. "Also, I have known the management of ReGen for many years now."

ReGen, which is promoted by M. Prabhakar Rao, boasts a client base that includes Tata Power, Green Infra, Torrent Power and Bhilwara Energy. It is expected to post a turnover of INR25 billion for the 2012 fiscal year.

As a result of MCap and IDFC's entry, Everstone Capital, an early investor in ReGen, will see its stake fall to 34%.

MCap is still fundraising for its debut vehicle, which is targeting $200 million.

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