Infrastructure company GR Infraprojects has mandated Standard Chartered Bank for raising Rs 1,670 crore (about $200 million) in equity capital, said people close to the development. Proceeds from the fundraise would be used for building greenfield power transmission projects, the people said.
GR Infraprojects, which has traditionally been engaged in road and highway projects, diversified into the power transmission space in the past few years.
"As India plans to achieve 500 GW of renewable energy capacity by 2030, integrating such large-scale renewable energy into the grid will need a future-ready transmission system. GR Infraprojects’ fundraise will facilitate the company's expansion in this segment," said an industry executive aware of the fundraising plans.
The company has a market cap of Rs 16,147 crore. In the 12 months, the stock has risen 33%, outperforming a 29% rise in the benchmark BSE Sensex.
GR Infraprojects and Standard Chartered Bank did not reply to email queries.
As part of its expansion strategy, early this month, GR Infraprojects acquired Tumkur-II REZ Power Transmission Ltd, a special purpose vehicle of REC Power Development and Consultancy for Rs 6.7 crore. The project entails setting up a 400/220 kV, 4X500 MVA pooling station near Tumkur in Karnataka, along with a 27.2 km 400 kV transmission line and associated infrastructure, at an investment of about Rs 793 crore and a completion timeframe of 24 months.
The project is part of a broader initiative aimed at transmitting 17 GW of renewable energy from Karnataka.
As per the Central Electricity Authority, the integration of additional wind and solar capacity by 2030 is estimated at 50,890 ckm and 4,33,575 MVA respectively for an estimated Rs 244,200 crore. This has called for further investments in the sector.
To be sure, one of the earliest investments in the greenfield power transmission sector was the $1 billion Sterlite Power-AMP Capital partnership (now owned by Digital Bridge). The AMP Capital investment was managed by Impact Infracap, a boutique advisory firm floated and headed by Sharat Goyal. Spurred by the success of this arrangement, GIC Singapore last year committed $500 million to Sterlite Power.
According to power companies, transmission has become the biggest hurdle in adopting renewable capacity. This constraint will adversely impact the planned RE implementation of 50GW per year to achieve the targeted 500 GW addition by 2030. There is a severe limitation of interconnection access till at least 2029.
GR Infraprojects, which has traditionally been engaged in road and highway projects, diversified into the power transmission space in the past few years.
"As India plans to achieve 500 GW of renewable energy capacity by 2030, integrating such large-scale renewable energy into the grid will need a future-ready transmission system. GR Infraprojects’ fundraise will facilitate the company's expansion in this segment," said an industry executive aware of the fundraising plans.
The company has a market cap of Rs 16,147 crore. In the 12 months, the stock has risen 33%, outperforming a 29% rise in the benchmark BSE Sensex.
GR Infraprojects and Standard Chartered Bank did not reply to email queries.
As part of its expansion strategy, early this month, GR Infraprojects acquired Tumkur-II REZ Power Transmission Ltd, a special purpose vehicle of REC Power Development and Consultancy for Rs 6.7 crore. The project entails setting up a 400/220 kV, 4X500 MVA pooling station near Tumkur in Karnataka, along with a 27.2 km 400 kV transmission line and associated infrastructure, at an investment of about Rs 793 crore and a completion timeframe of 24 months.
The project is part of a broader initiative aimed at transmitting 17 GW of renewable energy from Karnataka.
As per the Central Electricity Authority, the integration of additional wind and solar capacity by 2030 is estimated at 50,890 ckm and 4,33,575 MVA respectively for an estimated Rs 244,200 crore. This has called for further investments in the sector.
To be sure, one of the earliest investments in the greenfield power transmission sector was the $1 billion Sterlite Power-AMP Capital partnership (now owned by Digital Bridge). The AMP Capital investment was managed by Impact Infracap, a boutique advisory firm floated and headed by Sharat Goyal. Spurred by the success of this arrangement, GIC Singapore last year committed $500 million to Sterlite Power.
According to power companies, transmission has become the biggest hurdle in adopting renewable capacity. This constraint will adversely impact the planned RE implementation of 50GW per year to achieve the targeted 500 GW addition by 2030. There is a severe limitation of interconnection access till at least 2029.
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