Everstone-Backed ReGen May Raise Funds by April, IPO Next Year
ReGen Powertech Pvt., the second- biggest Indian supplier of wind turbines, is in talks to raise 2 billion rupees ($39 million) from two private-equity investors.
The company expects to close the deal by April 15, Managing Director Madhusudan Khemka said in an interview in Chennai yesterday. ReGen is also considering an initial public offering in 12 to 15 months, he said.
India, the third-biggest wind market, is attracting investments as the cost of wind power closes in to that of coal- based electricity amid a surge in the price of fossil-fuel imports. Developers’ bids in auctions for coal-fired power stations have ranged from $49 to $78 a megawatt-hour, against tariffs for wind farms of $66 to $105 a megawatt-hour, according to Bloomberg New Energy Finance.
Goldman Sachs Group Inc. bought a majority stake in Mumbai- based ReNew Wind Power Pvt. for $200 million in September. Morgan Stanley may invest $200 million in Continuum Energy Pte., the Times of India reported this month.
ReGen, which has orders to build 4,300 megawatts of wind capacity, is seeking funds to buy sites for new farms and to invest in power distribution infrastructure for its projects, Khemka said.
In December, the company raised 600 million rupees from the private equity arm of Infrastructure Development Finance Co. (IDFC) and 400 million rupees from MCap Fund Advisors. In 2007, Everstone Capital Advisors Pvt., started by two former Goldman Sachs executives, invested 550 million rupees in ReGen, which has a turbine technology partnership with Germany’s Vensys Energy AG, according to its website.
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