CleanMax Solar raises Rs 275-cr equity funding from UK Climate Investments

UK Climate Investments signed three different deals in India till date

Rooftop solar company CleanMax Solar announced equity-based funding of Rs 275 crore from Macquaire-managed UK Climate Investments. This is the second round of fund raising for CleanMax Solar. The firm is eyeing an operating capacity of 2000 megawatt (MW) by 2022.

The company will use the funds to add 400-500 MW to its current 500 MW capacity, said Kuldeep Jain, managing director for the company. Jain further said that the company may go for public listing later, in a bid to achieve 2000 MW capacity by 2022.

UK Climate Investments has signed three different deals in India so far, totaling an investment of 90 milion pounds. The total fund available is close to 200 million pound sterling. “India will make for a significant share of this fund and we may look at a couple of more deals in India,” said Amit Rana, senior vice president for UK Climate Investment. The fund and the company refused to share the amount of equity that would be issued against the Rs 275 crore funding.

In 2017, CleanMax had raised an equity financing of upto Rs 700 crore from an affiliate of Warburg Pincus and International Finance Corporation (IFC). Company officials peg the adjusted returns for the solar rooftop segment in the range of 16 per cent.

The company in its statement said it holds a market leader position with 17 per cent market share in rooftop solar and 9% market share in open access solar as of financial year 2017-18. The last one year has seen entry of conglomerates like the Tata Power in the rooftop segment. “It is a fast expanding sector, and there is room for everyone,” said Jain, referring to increasing competition in this space.