A Multinational Pharmaceutical entity from India (With A+ Credit rating) is looking to diversify through strategic investment for a Solar Power Plant.
Posted By - Investment Banker
Posted date - 08/04/2021
BUSINESS BRIEF
An MNC in the pharmaceutical sector (with an A+ Credit rating) seeks to adopt greener/cheaper solar power through an SPV.The Company Has approved investment of 26% in the equity holding of an SPV set up for the Solar power project.. Investors and Customer form an SPV, with customer getting non-voting, non-dividend paying shares
Revenue @INR3.5/kWH with no escalation and O&M of INR 5.31 Lakh per MW DC P.A.
Current PPA tenure of 15 years having contract demand of almost 7.5 MVA at its main manufacturing plant with base energy cost being INR 7.02 / kWh (which can be offset against solar units consumed).
Prospective Investor to bill at INR 3.50 / kWh of energy injected into the grid as metered at the DISCOM substation.
The company is looking to fund 75% of Project cost(Valued at 35.49crore) for Around 30cr
Proposal
Capital Requirement
INR 30 Cr
Justification
Revenue @3.5/kWH with no escalation Pre-tax Project IRR of 11.5% Pre tax Equity IRR of 20.63% Total Project Cost:INR35.49 Crore Company's Equity Contribution:INR2.75 crore
Funding Route
Strategic Investor
Extent Of Dilution
Upto 50 %
Share Holding Pattern
Promoter Group
100%
Non-Promoter Share Holder
0%
Reason For Raising Capital
, Strategic Investment
Business Operation Information
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