Gentari India Stake Sale Sparks Bids from Global PE Giants

RENEWABLES

Overview

Malaysian energy firm Gentari is seeking buyers for a 50% stake in its India operations, targeting an enterprise valuation of $2-2.5 billion. Global private equity firms like Macquarie and Actis are reportedly evaluating bids, with the first round expected this month. This move reflects a broader trend of foreign energy majors assessing their Indian portfolios amidst high valuations and sector challenges.

Bidding Intensifies for Gentari India Stake

MUMBAI – Global private equity powerhouses Macquarie, Actis, and Sembcorp are reportedly among the firms evaluating bids for a significant stake in Gentari's India business. Serentica Renewables and JSW Group are also participating in the initial stages, according to three individuals familiar with the process. The first round of bids is slated for the end of this month.

Valuation and Debt Concerns

Gentari, the clean energy subsidiary of Malaysia's Petronas, is aiming for an enterprise valuation between $2 billion and $2.5 billion for its Indian assets. However, substantial debt levels mean the equity value of the stake being offered stands between $600 million and $700 million. Standard Chartered Bank was previously tasked with finding potential buyers for the business unit.

Broader Sector Trends

The potential sale aligns with a larger strategy observed among international energy companies. Many are exiting or seeking strategic partnerships in India, driven by elevated market valuations and significant growth prospects. Gentari's Indian footprint includes approximately 7GW of renewable energy projects, along with ventures in EV charging networks and green hydrogen. Despite this activity, India's green energy sector grapples with challenges such as stranded projects lacking power purchase agreements and volatile market prices.

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