The Economic Times: April 26, 2011
Mumbai: Matrix Partners, a private equity firm from the US, is in talks to buy a 20% stake in Soham Renewable Energy India for 70 crore, valuing the company at 350 crore, people familiar with the discussions said. Soham Renewable Energy plans to produce power from hydro resources.
This is the fourth private equity funding that Soham would receive in three years. Matrix did not respond to e-mail queries and Soham could not be reached for comment.
The other private equity investors in the company are DE Shaw, FE Clean Energy and Praxair India. Soham has an installed capacity of 22 mega watts in Karnataka. It also has five hydro power projects under construction. The company had said it planned to raise as much as 700 crore for expansion.
India's renewable energy investment potential is estimated to be around $2 billion, but experts say investors are seeing demand only for hydro power generation while solar power and wind energy are stuck with taxation and regulatory issues. One of the biggest deals in the sector was the $420 million investment in Asian Genco by Morgan Stanley, Everstone Partners and Norwest Ventures, who picked up 44% in the company.
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