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Sembcorp invests 750m rupees in India renewable energy sector

SEMBCORP Industries has invested an additional 750 million rupees (S$15.1 million) in the Indian renewable energy sector.

The industrial conglomerate said that wholly owned subsidiary Sembcorp Utilities invested an additional 750 million rupees into Sembcorp Green Infra, raising its stake to 68.74 per cent from 67.67 per cent. The investment, which was fully funded by internal resources, was via a rights issuance by Sembcorp Green Infra, and included a 32.33 per cent share of the rights issuance that partner IDFC Private Equity Fund III did not take up.

Sembcorp Green Infra, in turn, acquired a 74 per cent stake in the special purpose vehicle Mulanur Renewable Energy for 1.58 billion rupees. Mulanur Renewable has an operating capacity of 25.5 megawatts of wind power assets in Tamil Nadu. Its remaining 26 per cent stake is held by Group Captive Consumers.

Neither transaction is expected to have a material impact on earnings per share or net asset value per share for Sembcorp Industries in the year ending Dec 31, 2016.