Global Infra Partners, KKR, Brookfield, I Squared Capital and Macquarie are among 15 large funds in race for buying over 1,000-megawatt renewable energy assets of Infrastructure Leasing Financial Services Ltd (ILFS).The proposed sale of stake held by ILFS Group in these assets and businesses is likely to garner Rs 6,000-8,000 crore.ILFS had called bids for asset management services unit of wind power plants and business division that develops and implements these projects.
This includes a controlling stake in wind power plants with an aggregate capacity of 873.5 MW as well as those under construction with a combined capacity of 104 MW.
Solar power plants and projects under development of about 300 MW capacity are also up for grabs.The newly-constituted ILFS board called for expressions of interest to assess interest in its stake in renewable energy assets in November 2018.
The stake sale in subsidiaries is part of companys resolution plans.Burdened under a Rs 91,000-crore debt load, infrastructure finance company had approached National Company Law Tribunal (NCLT) to resolve issue with creditors without going in for liquidation.
ILFS has been looking to sell stakes in subsidiaries to monetise and pare its debt.
It has also submitted a plan to NCLT, looking to cut non-essential expenses.Arpwood Capital and JM Financial were appointed as financial and transaction advisors.
Alvarez Marsal is resolution consultant.KKR, Macquarie and Brookfield said they would not like to comment for story, while ILFS corporate communications head Sharad Goel declined to comment.India is expected to install 175 giga watt (GW) of renewable energy generation plants, including 60 GW of wind power by 2020.The bidding activity in renewable energy sector has remained sizeable with central nodal agencies like Solar Energy Corporation of India and NTPC Limited (NTPC) as well as state distribution utilities issuing bids for wind and solar power capacities of about 10 GW and 15 GW during 2017 and 2018, Icra had said in a report.The wind and solar power projects remain highly cost-competitive against conventional sources and would continue to increase their share in generation mix over next few years.
As per Icra estimates, share of renewable energy in generation mix is expected to increase to 12-13 per cent by FY22 from 7.7 per cent in FY18, said Sabyasachi Majumdar, group head for corporate ratings at ICRA.