Sembcorp invests $101.6m to raise stake in India energy business

The Sembcorp logo seen on one of its facilities.
The Sembcorp logo seen on one of its facilities.PHOTO: LIANHE ZAOBAO

SINGAPORE - Sembcorp Industries has injected 516.9 crore rupees (around S$101.6 million) in equity to raise its stake in its India energy arm Sembcorp Energy India Limited (SEIL) to 94.05 per cent from 93.73 per cent.

Through its subsidiary Sembcorp Utilities (SCU), the group subscribed for an additional 275 million additional shares in SEIL to support the growth of its India renewable energy business.

The equity injection was funded through a mix of internal funds and borrowings. The balance of shares in SEIL, meanwhile, is owned by SCU's Indian partner Gayatri Energy Ventures.

The transaction, which was first reported in June, is not expected to have a material impact on the earnings per share and net asset value per share of the group for the fiscal year ending Dec 31, 2019.

SEIL has a wind and solar power portfolio of more than 1,700 megawatts, including 550 megawatts in development. Late last year, it became the first company to deliver a wind farm secured in India's nationwide wind power tenders.

Sembcorp shares were trading flat at $2.39 on Wednesday as at 12.57pm.