Canada-based pension fund Omers and Norway government’s private equity arm Norfund are in discussion to invest $200 million in Avaada Energy for a 20% stake, attaching the value of the four-year old renewable energy startup at $1 billion, people aware of the matter said.
Talks with the two funds are in an advanced stage though due diligence, which needs site visits, has been delayed due on account of travel restrictions
between March and May, the sources said. Omers and Norfund deteriorated to comment when contacted. Avaada Energy declined to comment.
Avaada Energy was founded in 2017 by former Welspun Energy promoter Vineet Mittal who left Welspun Group after it sold its renewable business to Tata Power NSE -0.36 % for Rs 10,000 crore in 2016.
Avaada Energy has implemented 2 gigawatt of solar power generation capacity so far and has 3.5 W of capacity under construction across Africa and India. In some cases, it acts as a contractor for establishing solar power projects while in others it owns power generation facilities.
Bharti Airtel NSE -0.81 % had lately picked up an 8% stake in a solar power subsidiary of Avaada Energy.
Mittal is a Harvard Business School graduate who is credited for the triumph of Welspun’s foray into renewable energy after he partnered with the group’s promoter Bal Krishna Goenka.