Orient Green Power Co. Ltd (OGPL) has raised Rs. 250 crore from existing promoters Shriram Venture Limited (SVL) and its subsidiaries and financial investors, including EW Special Opportunities Fund II Pte. Limited and Ecap Equities Limited, through preferential allotment.
Equirus Capital acted as exclusive advisors to OGPL and Shriram Group for the fund raise while Nishith Desai acted as the legal advisors.
Ajay Garg, Managing Director of Equirus Capital said "The investment is a strong vote of confidence by the promoters and investors in the business and management of OGPL. It will allow the company to achieve substantial growth and propel itself to being amongst the biggest renewable energy companies in India."
The Shriram group has re-iterated its commitment towards the renewable energy venture, having invested Rs. 5.5 bn in the last 5 years (through preferential allotments, open offers and secondary purchases) including this transaction.
The transaction also re-iterates investor interest in the renewable energy space which has seen multiple investments in the last 3 years. The preferential allotment is happening at a price of Rs. 14.56 per share, which has been determined as per SEBI Regulations.
OGPL is one of India's leading renewable energy players with 428 MW of operational wind assets and 106 MW of operational biomass assets. The company had earlier announced demerger of the biomass business for which board approval was obtained on June 13, 2015. OGPL will utilize these funds for growth capex as well as deleveraging.
Commenting on the transaction, S. Venkatachalam, Managing Director OGPL, said "The investment will enable the Company to augment its wind energy capacity and to reduce its interest outgo and outstanding debt. The improved cash flows will strengthen the financial position thereby enabling OGPL to better capture the significant growth opportunities in the renewable energy space."
Shares of ORIENT GREEN POWER COMPANY LTD. was last trading in BSE at Rs.11.95 as compared to the previous close of Rs. 11.46. The total number of shares traded during the day was 419198 in over 1118 trades.
The stock hit an intraday high of Rs. 12.32 and intraday low of 11.65. The net turnover during the day was Rs. 5037841.