Sembcorp raises stake in India energy arm to 94.05% with $102 mil investment

(July 10): Sembcorp Industries has pumped in more funds to support the growth of its India renewable energy business.

This was done through the subscription of 275 million shares in Sembcorp Energy India Limited (SEIL), for a total of INR516.9 crores ($101.6 million) by Sembcorp Utilities (SCU) wholly-owned subsidiary of SembMarine.

The investment raises Sembcorp’s effective stake in its India energy arm, Sembcorp Energy India Limited (SEIL), to 94.05% from 93.73%.

The balance of the shares in SEIL is owned by SCU’s local partner, Gayatri Energy Ventures Private Limited.

In India, SEIL has a wind and solar power portfolio of more than 1,700 megawatts.

Late last year, SEIL completed the 250-megawatt Solar Energy Corporation of India (SECI) 1 project ahead of schedule.

SEIL is currently developing two additional wind power projects, SECI 2 and SECI 3, which it also won in the nationwide wind tenders.

Sembcorp says the equity injection was funded through a mix of internal funds and borrowings.

Sembcorp says the investment is not expected to have a material impact on its earnings per share and net asset value per share for the financial year ending Dec 31, 2019.

As at 2.40pm, shares in Sembcorp are down 1 cent at $2.38.