Sembcorp has announced the infusion of equity worth Rs 516.9 crore into SEIL to support its renewable energy business in India.
Sembcorp Industries has announced the infusion of equity worth Rs 516.9 crore into its India arm Sembcorp Energy India (SEIL) to support its renewable energy business in the country. The equity injection is funded through a mix of internal funds and borrowings, Sembcorp has said in a filing to the Singapore stock exchanges.
The equity infusion results in the subscription to 275 million additional shares in the SEIL by the Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities (SCU), the company statement said.
With this infusion of about Rs 516.9 crore into the SEIL to support the growth of its India renewable energy business, Sembcorp’s effective stake in the energy arm has increased from 93.73 percent to 94.05 percent, it added. The balance of the shares in the SEIL is owned by SCU’s local partner, Gayatri Energy Ventures.
SEIL is one of the leading independent power producers (IPP) in India with a balanced portfolio of thermal and renewable energy assets totaling approximately 4.37 GW capacity in operation and under construction. With operating assets across seven states in India, SEIL owns 100 percent of Sembcorp Green Infra, which has a wind and solar power portfolio of more than 1,700 megawatts.
In October 2018, SEIL became the first company to deliver a 250 MW wind farm project ahead of schedule. SEIL and Suzlon completed the 250 MW wind power project, which was the first among all SECI auctioned wind projects to achieve full completion in India.
SEIL Director, Director, Vipul Tuli said at the time, “The successful completion of the Chandragiri wind power project is an important milestone in Sembcorp’s journey towards providing energy to support India’s continued development and prosperity. It is a moment of pride for Sembcorp Energy India Limited and our EPC partner Suzlon, as we were able to deliver the entire project ahead of the SECI timelines.”
The company is currently working on the development of two additional wind power projects, SECI 2 and SECI 3, which it also won in nationwide wind tenders by SECI.