CleanMax secures equity investment worth Rs.1,650 crore from Augment Infra
Mumbai-based rooftop solar developer, CleanMax has announced that US-based investment firm, Augment Infrastructure, is set to obtain a majority stake in the company for an equity consideration of Rs 1,650 crore.
As per the press release, CleanMax will use this investment to fast-track its growth in the C&I renewable energy space in India, Middle East, and Southeast Asia.
"This investment will facilitate CleanMax to strengthen its leadership position in the business-to-business renewable energy sector, expand to new geographies and focus on organic and inorganic growth," said Nikunj Ghodawat, Chief Financial Officer, CleanMax.
He added that the primary capital raised by CleanMax will sustain their expansion efforts to build their customer base and add about 400 megawatts (MW) of new capacity annually. CleanMax aims to enhance operating capacity from 760 MW to about 2,000 MW in the next three years.
Ghodawat further added that successively, Augment Infrastructure will become the largest investor in CleanMax, while their former investors Warburg Pincus and IFC would be opting for an exit.
"We are happy to note that both global investors will secure an exit, which is always a responsibility of the management team to deliver upon. I am also delighted to note that over 150 CleanMax colleagues, present and past, are securing a part exit on their ESOPs," said Kuldeep Jain, founder and managing director of CleanMax.
The rooftop firm said that this investment would involve a purchase of the stake held by Yellow Bell Investment, an affiliate of global private equity firm Warburg Pincus, and International Finance Corporation along with an investment of primary capital in the company to fund its growth pipeline. While UK Climate Investments will continue as an investor and Board member.
CleanMax has new investments lined up in off-site renewables such as wind-solar hybrid projects in Karnataka, Gujarat, and Maharashtra and also in standalone solar farms in Haryana, UP, Chhattisgarh, Maharashtra, and Tamil Nadu to serve the needs of corporate customers.
Rothschild & Co was an adviser to the company and shareholders for this transaction.