India's Welspun seeks to shed renewables arm - report
Rooftop solar system in India. Author: Coshipi. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Indian conglomerate Welspun Group has hired UK bank Barclays (LON:BARC) to find a buyer for its renewable energy business, whose portfolio totals 494 MW, the Economic Times said on Monday, citing sources.
Welspun Renewables’ vice chairman Vineet Mittal denied the information when contacted by the newspaper, but said the company is looking to raise funds from the market. The current enterprise value of Welspun Renewables is estimated at INR 100 billion (USD 1.5bn/EUR 1.42bn), including INR 65 billion worth of debt, the ET said.
Cutting debt is the main reason for the planned sale, the two unnamed sources have mentioned. One of the people has added, as cited by the paper, that overseas strategic investors have already expressed preliminary interest.
The company’s portfolio mostly includes solar parks, but also has some wind farms. The company aims to commission an additional 1 GW by the end of fiscal 2016, according to the report.