Piramal Enterprises shares touched a record high of Rs 1,065, up 9.5 percent intraday Wednesday after the company and Dutch pension fund asset manager decided to pump in money into Essel Infra’s solar venture. “Piramal Enterprises through its structured investment group and Dutch pension fund asset manager APG Asset Management will invest USD 132 million to power Essel Infrastructure’s solar IPP platform across India,” said Piramal group company in its filing.
As a part of transaction, Piramal Enterprises and APG will jointly invest (Rs 900 crore) USD 132 million in Essel Green Energy, the solar platform vehicle of Essel Infraprojects. Essel Green Energy currently owns 160 MWs of Solar IPP assets in 4 states of India. Out of which, 110 MW is operational and 50 MW is currently under execution. Ernst and Young India was the financial advisor to Essel Group for transaction. Essel Infraprojects, an enterprise of Subash Chandra led Essel Group, plans to ramp up its solar power capacity to 1,000 MW in next 2-3 years. Piramal Enterprises and APG formed strategic alliance in 2014 for USD 1 billion investment in infrastructure companies.
“We see great potential in green energy as a segment. Given the government’s focus on non-conventional energy and Essel Infra’s strong track-record, we are confident that the investment will yield good results,” said Jayesh Desai, co-head, structured investments group-Piramal Enterprises.
Source:Moneycontrol
