TPG in Indian clean energy deal

AIM-listed Greenko has raised £72m, which includes a £21m investment from TPG. The investment marks the global private equity firm’s first foray into the clean energy sector in India.

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

TPG: Pumping
£21m into

The investment gives TPG a share of approximately 12.5 percent of the enlarged ordinary share capital of Greenko. It is the firm’s first significant investment in India’s clean energy sector, Greenko said in a statement.

In total, the company raised about £72 million from TPG, Arden Partners and Mirabaud Securities through a placement of approximately 51.4 million new ordinary shares. The new 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 26 January. The investment is subject to shareholder approval.

Greenko shares have risen by 5.6 percent since the investment was made and were trading at 150 pence at press time.

Greenko is engaged in renewable energy generation through the development, acquisition, construction and operation of hydro and biomass-fired plants. 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.