Hero Future Energies to rope in JP Morgan for pre-IPO fundraise of $200 mn

“The transaction is expected to be launched. It is at a very early stage,” one of the two people cited above said, requesting anonymity.

This development comes in the backdrop of the green energy firm’s earlier fundraising of $450 million from parent Hero Group and global investment firm KKR in September 2022. International Finance Corporation (IFC) is also an investor in Hero Future Energies.

Spokespersons for Hero Future Energies and JP Morgan declined to comment.

In an interview with Mint last August, the company’s chairman and managing director Rahul Munjal had said that Hero Future Energies would look at several options to raise funds over the next two to three years, including an IPO. He had added that the company will also plan new fundraises, including private investments and accessing public markets.

London-headquartered Hero Future Energies has a 3 gigawatt (GW) operational and under-construction portfolio across India, Ukraine and Vietnam, and an additional 2 GW pipeline.

India’s green energy deal space has been pretty active, with investors attracted by the country’s unfolding energy transformation playbook. A recent case in point is Malaysia’s state-run oil and gas company, Petronas’s unit Gentari Sdn Bhd emerging as the winning bidder for Fortum Oyj’s Indian solar projects totalling 185 MW, in a deal having an enterprise value of around $200 million, as reported by Mint earlier.

Other green energy deals in play include Macquarie Group’s sale of 400 MW solar power projects of its Stride platform that has also drawn interest from Gentari, Actis Llp; and Sekura Energy Ltd, backed by Edelweiss Infrastructure Yield Plus Fund.

Ayana Renewable Power has also mandated Standard Chartered to sell a majority stake of as much as 100%, targeting an equity valuation of around $2 billion. The shareholders are also seeking to raise $400 million more to finance growth.

Also, Eversource Capital-backed Radiance Renewables Pvt. Ltd. has mandated Rothschild & Co. for the sale of the commercial and industrial platform at an equity value of around $150 million. Italy’s Enel Group has hired HSBC for the sale of its portfolio in a deal having an equity value of around $300 million. In other proposed deals, ACME Group has engaged EY to sell a majority stake of up to 51% in its proposed infrastructure investment trust (InvIT), in a deal having an equity value of around $1.3 billion. Shell Plc has mandated Ambit Group to conduct a valuation exercise for a minority stake sale in the operational assets of Sprng Energy group that it acquired in 2022 from Actis at an enterprise value of $1.55 billion.

India has an installed solar power generation capacity of 73.32 GW, and a total estimated solar energy potential of 748 GW, according to the government. The Indian government has set a target of achieving 500 GW of installed capacity from non-fossil fuel sources by 2030, in line with Prime Minister Narendra Modi’s announcement at COP-26, held in Glasgow.

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Published: 22 Feb 2024, 10:57 AM IST