Sembcorp to infuse equity worth Rs 516.9 cr in SEIL to push renewables biz

Sembcorp Industries Wednesday announced infusion of equity worth Rs 516.9 crore into its India arm Sembcorp Energy India (SEIL) to support its renewable energy business in the country.

The equity injection is funded through a mix of internal funds and borrowings, Sembcorp has said in a filing to the Singapore stock exchanges.

The equity infusion results in the subscription to 275 million additional shares in the SEIL by the Sembcorp's wholly-owned subsidiary, Sembcorp Utilities (SCU), the company statement said.

With this infusion of about Rs 516.9 crore into the SEIL to support the growth of its India renewable energy business, Sembcorp's effective stake in the energy arm has increased from 93.73 per cent to 94.05 per cent, it added.

The balance of the shares in the SEIL is owned by SCU's local partner, Gayatri Energy Ventures.

SEIL is one of the leading independent power producers (IPP) in India with a balanced portfolio of thermal and renewable energy assets totalling approximately 4.37 GW capacity in operation and under construction.

SEIL, which has operating assets across seven states in India, owns 100 per cent of Sembcorp Green Infra. It has a wind and solar power portfolio of more than 1,700 megawatts.

Late last year, SEIL became the first company to deliver a 250 MW wind farm project ahead of schedule. SEIL had secured the project in an auction conducted by the state-run Solar Energy Corporation of India (SECI).

SEIL is now making progress in the development of two additional wind power projects, SECI 2 and SECI 3, which it also won in nationwide wind tenders by SECI.

Sembcorp Industries is listed on the main board of the Singapore Exchange, SCI is a component stock of the Straits Times Index, several MSCI and FTSE indices, as well as the SGX Sustainability Leaders Index and the Dow Jones Sustainability Asia Pacific Index.