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Indian energy firm to raise up to USD 200m for wind projects

Welspun Energy in talks with renewable energy funds to raise investments in India’s wind farms

Welspun Energy is in talks to raise up to USD 200m for wind projects in India

An Indian energy firm is looking to raise up to USD 200m for wind projects in the country. India's Welspun Energy is in talks with renewable energy funds to sell a small stake in the company and raise between USD 150m and USD 200m for investments in wind energy farms, according to Reuters.

The deal could lead to one of the founders reducing stake by up to 15 per cent in the firm. Welspun Energy, which is involved in wind, thermal and solar projects, has a capacity of about 270 MW of solar projects on the ground.

The Economic Times has reported that the company is “looking at options”. But it's too premature to say anything at this stage.

Welspun has mandated Macquarie to advice on the deal, the paper said, adding that the investment banking firm was talking to potential investors such as Nereus India Alternative Energy Fund LLC, Magnetar Fund and IFC, the private arm of the World Bank.

Global renewable energy investors are increasingly looking to Southeast and South Asia, lured by investment incentives rolled out by governments in the region amid a bleak outlook for clean energy investment in Europe and the US.

Welspun Energy plans to invest USD 1bn to construct two wind farms in Karnataka in the next five years. The energy firm recently signed agreements with the Karnataka government for projects with 100 MW and 750 MW of capacity to achieve its goal of installing 1.7 GW of solar and wind parks, sufficient to power nine million Indian homes.