TPG enters Indian renewables sector

The firm has led a £72m funding round for a Hyderabad-based company, marking its first 'significant' foray into India's clean energy sector.

TPG Growth, the growth equity investment platform of private equity firm TPG, has invested £21 million (€24.3 million; $34 million) for a 12.5 percent stake in Hyderabad-based Greenko, an independent power producer focused on the generation of renewable energy.

It is the firm’s first significant investment in India’s clean energy sector, Greenko said in a statement.

The investment is part of a larger, £72 million share placement Greenko has completed with investors including Arden Partners and Mirabaud Securities. Roughly 51 million new ordinary shares were sold at 140 pence a share, a discount of about 1.4 percent to the closing middle market price of 142 pence on Monday. The deal is subject to shareholder approval.

Hydro power plants: TPG dives in

Greenko shares have risen by 5.6 percent since the investment was announced; shares were trading at 150 pence at press time. As of November 2009, the company has 101.5 megawatts of contracted capacity of clean energy assets including six biomass and three hydro plants and 154 megawatts of concessions under development.

In November 2009, Greenko received a $46.3 million investment from Global Environment Fund, a US-headquartered environment- and cleantech-focused investment firm. London- and Paris-based Aloe Private Equity is also an investor in Greenko and currently has a 31.35 percent stake in the company.

TPG Growth manages capital worth more than $2.5 billion and is focused on investments in technology, life sciences, biotechnology, renewable energy and retail companies. It makes venture capital, growth equity, leveraged buyout and PIPE investments ranging from $20 million to $150 million globally.

Arden Partners is a UK-based stockbroker providing a range of financial services to corporates and institutional clients. Mirabaud Securities, part of Swiss banking house Mirabaud Group, is also a London-based stockbroker.