Chennai-based Orient Green Power Company, the public listed renewable energy firm of the Shriram Group, has said its board has approved a proposal to raise as much as Rs 400 crore through a qualified institutional placement (QIP), subject to shareholders’ nod.
The company’s AGM is to be held on August 12, 2014, when shareholders would take a call on the proposed fundraising.
The firm did not say for what purpose it seeks to raise fresh cash.
Established in 2006 as a JV between Shriram EPC and Bessemer Venture Partners, Orient Green Power develops renewable energy power plants based on biomass, bio gas, wind energy and small hydel projects. Both the JV partners had put $10 million each to start the venture.
The firm started generating power in April 2008 after it acquired the first biomass plant in Kotputli, Rajasthan. It went public four years ago.
Last year it had decided to divest 26 per cent stake in three subsidiaries to undisclosed buyers. This was to enable the subsidiaries to shift to a group-captive model, which entails participation of not less than 26 per cent of the shareholding in the subsidiaries by captive consumers of the respective units.
Earlier, all the three firms had power purchase agreements (PPA) with Tamil Nadu Electricity Board but have now come out of the agreement and are selling electricity to other parties.
Last September it had also seen a top management change with the resignation of P Krishnakumar whose role went to S Venkatachalam.
(Edited by Joby Puthuparampil Johnson)