Azure Power to raise US $75 million equity from Canadian investor CDPQ

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New Delhi-headquartered Azure Power Global is going to raise US $75 million through a private placement of shares to Canadian pension fund Caisse de depot et placement du Quebec (CDPQ).

The company has entered into a subscription agreement to raise the amount through sale of 6,493,506 equity shares at US $11.55 per share to CDPQ.

The private placement is expected to complete by December 17, 2019 and will increase CDPQ’s equity stake in Azure Power to 49.4% from 41.4%.

“The closing of the private placement is conditional on the company receiving the necessary shareholder approvals for the issuance of equity shares comprising more than 10% of the company’s share capital and the non-application of Section 55 of the Mauritius Companies Act to this issuance”—read a press statement by Azure Power.

Azure will hold a special meeting on December 6, 2019 to obtain shareholders’ approval.

Speaking on this occasion, Azure Power CEO Ranjit Gupta said, “We believe the proposed additional investment by CDPQ illustrates our largest shareholder’s commitment to our platform. With this capital raise, our current committed projects will be fully equity funded. The Indian solar market offers significant growth opportunity and with our differentiated integrated platform and strong access to capital, we look forward to delivering accretive growth going forward.”

Azure Power has a pan-India portfolio of over 3 GW. It has developed, constructed and operated solar projects of varying sizes, including the construction of India’s first private utility-scale solar PV power plant in 2009 and the implementation of the first MW scale rooftop project under the smart city initiative in 2013.

In August this year Azure Power received the letter of award for a 300 MW solar power ISTS project in a 1.2 GW auction conducted by Solar Energy Corporation of India (SECI). With this win, the developer reached 1.5 GW of ISTS projects with sovereign counterparties, which is the largest such portfolio in India.

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