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Sembcorp ups stake in India renewable energy business

SEMBCORP Industries on Wednesday said its wholly-owned subsidiary Sembcorp Utilities has subscribed to the entire rights issuance by Sembcorp Green Infra to fund the company's growth in the renewable sector in India.

This includes the 40 per cent share that was not subscribed by its partner IDFC Private Equity Fund III.

The total investment of the entire rights issuance amounts to 2 billion rupees (about S$43 million), which will be funded through a combination of internal funds and borrowings.

As a result of the partner's non-participation in the rights issuance, Sembcorp Utilities' stake in Sembcorp Green Infra has increased to 64.06 per cent, up from the previous 60 per cent.

This portion of the investment amounts to 800 million rupees (about S$17 million), Sembcorp said.

It added that this is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2015.