Chennai- based Rajalakshmi Group, which runs engineering and technology colleges, has acquired a majority stake in Ashok Leyland Wind Energy. The Group has also lined up new projects worth ₹ 1,100 crore and is in talks with private equity firms to fund the expansion.
Abhay S Meganathan, managing director, Rajalakshmi Automobiles, said the Group had bought out 75 per cent in Ashok Leyland Wind Energy from Ashok Leyland and Hinduja Foundries.
Last week, Ashok Leyland had said it had diluted stake in Avia Ashok Leyland Motors and Ashok Leyland Wind Energy, but did not disclose the value and name of the company which acquired the stakes.
While declining to comment on the value of the 75 per cent stake in Ashok Leylands renewable energy arm, Meganathan said the enterprise value of Ashok Leyland Wind Energy is around ₹ 170 crore.
The remaining stake will be held by the existing promoters for now, he added. Once the acquisition is complete, the company’s name will be changed. Rajalakshmi Group plans to add 137 Mw of wind power and 53 Mw of solar generation capacity.
Renewable energy being a capital- intensive sector, the Group would rope in investors, including private equity and institutional investors, said Meganathan. “ The Group is getting alot of overtures from institutional investors for co- investing in its wind and solar ventures.
We will go with one or two of them,” he added. According to Meganathan, the cost of setting up one mega watt of wind power is ₹ 5.5 crore and ₹ 8 crore per Mw for solar.
The Group, which already has 750 acres of land in Tamil Nadu, will also look at Andhra Pradesh and Karnataka.
With the Tamil Nadu government planning to strengthen the electricity infrastructure in the state, it is the right time to invest in renewable energy, said Meganathan. He said the Group would sign a power purchase agreement soon.
To rope in PE, institutional investors to fund ₹ 1,100- cr expansion Ashok Leyland promoters release pledged shares from HSBC
Hinduja Automotive Ltd, promoter of commercial vehicle major Ashok Leyland, has reduced its encumbered shares from 16.66 per cent of its total shareholding of 50.38 per cent, to 4.93 per cent, releasing over 330 million shares from HSBC.
According to a filing with the exchanges, the promoter firm has released 26,40,00,000 equity shares from HSBC om February 19, 2015, which accounts to 9.28 per cent of the total share capital. The encumbered shares before the release was 16.66 per cent of the total share capital. The post- event encumbered shares were 7.38 per cent of the total share capital.
In another filing, it informed that the promoter firm has released another 6,99,04,064 shares from HSBC on March 31, 2015. After release of the shares, the company has around 14,02,00,140 equity shares encumbered.
Source: Business Standard; 07 April 2015