Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, has fully subscribed to the rights issue of its Semcorp Green Infra, which finances the company’s growth in India’s renewable energy sector. Sembcorp has also picked up the unsubscribed rights issue portion of its partner IDFC Private Equity Fund III. The total contribution made by Sembcorp in this subscription is around Rs.200 crore that will be financed through a combination of internal accruals and borrowings. Since IDFC did not participate in the rights issue, the stake of Sembcorp Utilities in Sembcorp Green Infra stands increased to 64.06 per cent from the earlier 60 per cent.
In February 2015, Sembcorp Utilities had acquired 60 per cent stake in renewable energy firm Green Infra Ltd (GIL) for around Rs.1,060 crore. This stake was acquired from IDFC Private Equity Fund II, which is no longer a shareholder in GIL. The company was rechristened to Sembcorp Green Infra Ltd to reflect the Singaporean company’s majority shareholding. By the end of 2015, Sembcorp Green Infra is expected to have operational renewable assets of 700 mw, including 665 mw of wind energy and 35 mw of solar energy.