Serentica Renewables, an India-based clean energy firm backed by KKR, has announced a significant financial initiative to raise between $6 billion and $8 billion over the next five years. This capital infusion is aimed at supporting acquisitions and new-build projects, with the goal of more than doubling its clean energy capacity to 17 gigawatts (GW) by the fiscal year 2029/30. Currently, Serentica operates 2GW of solar and wind assets, with an additional 2GW expected to come online within the next 10 months.
Pratik Agarwal, chairman of Serentica, outlined that the first phase of their ambitious expansion plan, which involves a $3 billion investment, is fully funded. The second phase, targeting $2 billion, is partially financed, with discussions ongoing to secure the remaining necessary funds. The company is actively evaluating opportunities across the 3GW to 5GW range of operational and under-construction renewable energy projects currently available for sale in India, adopting an opportunistic and value-based approach to its investment strategy.
The strategic rationale behind this substantial investment initiative is rooted in India's growing demand for clean energy solutions and the government’s commitment to renewable energy targets. By expanding its portfolio, Serentica aims to position itself as a leader in the Indian renewable energy sector, capitalizing on the increasing shift towards sustainable energy sources.
As for the timeline, while specific closing dates for the capital raise are not disclosed, the firm is poised to utilize the raised funds over the next five years, aligning with its expansion goals. In terms of market impact, this initiative not only strengthens Serentica's position but also signals to investors the increasing viability and importance of clean energy investments in the region.
Regulatory considerations will also play a crucial role in this undertaking. Any significant acquisitions will likely require scrutiny and approval by Indian regulatory bodies, particularly in the context of antitrust laws and energy sector regulations. As the transaction progresses, stakeholders will be closely monitoring these developments to ensure compliance and smooth execution of the planned expansion.