Orient Green Power seeks shareholders' approval for fund raising

The resolution is to raise around Rs 400 crore, which would be used for capacity addition

The Board of Directors of Shriram Group's renewable energy firm Orient Green Power has decided to take an enabling resolution from the shareholders in its upcoming annual general meeting to issue and allot securities to qualified institutionial buyers worth upto Rs 400 crore.

This is an enabling resolution to get approval of the shareholders for a future fund raising, since the market is looking up, according to T Shivaraman, vice chairman of Orient Green Power.

The proposed fund raising would be to bring up additional capacity in the renewable sector, considering the opportunities for the sector is expected to go up. The sector hopes to grow better as the new government's communications are in direction to giving more focus to the sector, though there is no actual policy or action towards this direction so far.

Tamil Nadu, where the company's major assets are situated, has also increased its focus towards the wind energy sector this year, which is encouraging for the industry.

"Given the market condition is encouraging, we are seeking the shareholders' approval for fund raising. There is no roadmap ready at present," said Shivaraman.

The company's portfolio of operating projects included 510.355 MW of aggregate installed capacity, of which majority are wind energy projects and the rest is of Biomass Projects. It also has projects for 60 MW of wind power generation and around 20 MW of biomass facility in the pipeline, nearing completion, he added.