FE Clean Energy Asia is upping its bet on Bhilwara Energy. FE Clean Energy, through India Clean Energy III Limited (ICEL), is buying an additional 2.37% stake in Bhilwara Energy weeks after it made a $50 million infusion with International Finance Corporation (IFC).
The clean energy focused private equity fund is buying the stake held by a Wachovia entity called WIH Holdings in a secondary transaction. ICEL has recently signed definitive document to invested $25 million in BEL together with the IFC, part of the World Bank Group. The purchase of the WIH Holding stake and the investment directly in BEL will give ICEL 8% stake in BEL, making it the largest foreign investor in the company.
The recent infusion had valued Bhilwara Energy at around $465 million or Rs 2,130 crore. This may put the current deal size stands at around $11 million, according to VCCircle estimates.
Bhilwara has earlier raised funding from Jacob Ballas Capital managed New York Life Investment Management India Fund II LLC.
“This purchase of WIH stake in Bhilwara Energy reconfirms our interest and commitment in Bhilwara Energy Limited and its management. After this transaction FE Clean will be the second largest shareholder after the Promoter’s (LNJ Bhilwara Group) in Bhilwara Energy” said Anand Prakash, Managing Director FE Clean Energy.
Bhilwara Energy Limited (BEL) was incorporated in the year 2006 by LNJ Bhilwara group to consolidate the groups power assets. Bhilwara Energy Limited is the principal holding company for all the power ventures of the Bhilwara group. The company currently has two operating hydro power plant totaling to 278 megawatt. The company is aiming to develop
or acquire new green-field power projects in India and Nepal.
BEL holds 51% equity stake in Malana Power Company Limited (Kullu), a joint venture with S N Power, Norway. It holds 44.9% holding of AD Hydro Power Limited ( ADHPCL) indirectly, since MPCL, an 86 MW capacity holds a 88% stake in AD Hydro Power Limited and remaining 12% equity is with IFC, Washington. ADHPCL based out of Manali is now operational.
BEL also holds 51% stake in power consultancy firm i.e. Indo Canadian Consultancy Services Limited a joint venture with RSW Inc. of Canada. The group also claims to have the distinction of being India’s one of the first merchant power producer in the Hydro sector. The group is also exploring various opportunities in the solar power aggressively.
The group’s exposure and comprehensive competence in development of hydro and thermal projects extends across different Indian States.
FE Clean Energy, which has already committed $75 million to India across five investments, has an appetite for investing up to $50 million and more. It is also looking to diversify its focus areas in India from hydel to bio-fuels, energy to waste and agri–based
investments.
FE Clean's other investments in India include Soham Renewable Energy – a hydro based project in Karnataka, Elpro Energy Dimension- high efficiency street lighting in Bangalore, Ambuthirtha Power- hydro power project in Karnataka, and Swasti Power Engineering – hydro power project in Uttarakhand.
