The Gentari Stake Sale Gets Cracking: Actis, Macquarie, Sembcorp in Early Talks

Key Takeaways:

• Global PE giants Actis, Macquarie, and Sembcorp are in preliminary talks to buy a minority stake in Gentari’s Indian renewable energy portfolio.
• The Malaysian clean energy firm is looking to raise up to $1.3 billion from the stake sale.
• A successful deal would rank among India’s largest renewable energy transactions this year.

Global private equity heavyweights are circling Malaysia’s Gentari for a piece of its fast-growing Indian renewable energy business. According to sources, firms including Actis, Macquarie, and Sembcorp have held early discussions to acquire a minority stake.

“The talks are at a very early stage. The investors are looking to acquire a minority stake in the Indian portfolio of Gentari,” one of the two people said.

The move could see Gentari raise up to $1.3 billion, as previously reported. The company’s queries, along with those to the potential bidders, remained unanswered at press time.

Gentari’s Growing India Footprint

Gentari has rapidly built a significant presence in India. It currently operates 1.1 GW of solar and wind assets, with another 1.9 GW under construction. The company, targeting 30-40 GW of global renewable capacity by 2030, views India as a pivotal market.

Its entry was marked by the 2022 acquisition of Singapore’s Amplus Solar, which brought over 1.4 GW of projects. This was followed by a 200 MW asset purchase from Sembcorp Industries’ Indian unit in 2023. More recently, Gentari formed a major joint venture with GIC and to develop a large-scale green ammonia facility in India.

Why Global Investors Are Betting on India

India’s renewable energy sector is a magnet for global capital, fueled by the national goal of achieving 500 GW of clean energy capacity by 2030. Supportive government policies and a clear energy transition focus make it a prime investment destination.

The potential investment from firms like Actis, Macquarie, and Sembcorp would provide Gentari with fresh capital to accelerate its aggressive expansion. It would also allow the company to tap into the investors’ deep expertise and networks within the sector.

If finalized, this transaction will be a landmark deal for 2024, highlighting the robust confidence of international investors in India’s clean energy future.