Axis Private Equity, the private equity (PE) arm of Axis Bank, is set to close its latest investment in a South Indian clean energy firm by next month.
It is learnt that Axis PE will acquire a minority stake in the unlisted company, which has revenues of about Rs 300 crore, for around $15-20 million. This is Axis PE?s fifth investment from its Rs 600-crore Axis Infrastructure Fund (AIF), in which Axis Bank has invested Rs 200 crore.
Acknowledging the development, Alok Gupta, managing director and CEO of Axis PE, said, ?Clean energy remains an attractive sector; energy demand is soaring and the firm in which we are investing is performing well.?
The company in question produces hydro, solar and bio-waste energy. Gupta, refused to divulge further details about the deal.
Axis PE?s other deals include a Rs 75 crore investment in Neesa Leisure, which develops and operates resorts and hotels under the Cambay brand, and Rs 67 crore in Corrtech International, which is involved in the oil and gas transportation infrastructure business.
It has also invested $30 million in Delhi-based railway line manufacturer Harish Chandra India Ltd (HCIL) and $15 million in Vishwa Infrastructures and Services, which executes projects in the water supply and sanitation sector.
According to data from Venture Intelligence, about 15 deals worth $604 million were struck in the renewable energy segment in 2008. In comparison, 3 deals worth $121 million and 8 deals worth $218 million and were struck in 2006 and 2007 respectively in the segment.
Last year, IDFC PE had made three cleantech investments Moser Baer PhotoVoltaic, SE Forge Ltd and Emergent Ventures. Other investments in the sector included that of Helion Venture Partners in Azure Power, Olympus Capital?s $55-million investment in Orient Green Power and Nexus India Capital?s investment in Sedemac Mechatronics, a provider of energy efficiency solutions for the automotive and renewable energy markets.
According to an analysis by Ernst & Young, based on activities in the US, Europe, China and Israel, global investment in cleantech firms reached a record $4.6 billion in the first three quarters of 2008, an 82% increase over the same period in the previous year; it represents 13% of all venture capital investment in these geographies.
PE firms invested about $10.79 billion over 399 deals in India during 2008, against $14 billion investment across 439 deals in 2007.
