Azure Power Inks Subscription Pact to Raise $75 Mn

By Manu Tayal/ Updated On Thu, Nov 7th, 2019

Gupta further said “with this capital raise, our current committed projects will be fully equity funded.”

Azure Power Rajasthan

Country’s one of the largest solar power developers and operators Azure Power has signed a subscription pact to raise USD 75 million via private placement of over sixty four lakh equity shares at USD 11.55 per share to Caisse de depot et placement du Quebec (CDPQ).

However, closing of the transaction is subject to necessary approvals from shareholders for issuance of shares comprising over 10 percent of it’s share capital and non-application of section 55 of the Mauritius Companies Act to this issuance, the company said in a statement.

The solar energy developer also said that, there will be a special meeting held of shareholders on December 6, 2019 in order to obtain their approvals. However, the record date for this special shareholders’ meeting is November 18, 2019.

Commenting on the development, Azure Power, Chief Executive Officer, Ranjit Gupta said “we believe the proposed additional investment by CDPQ illustrates our largest shareholder’s commitment to our platform.”

Gupta further said “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.”

Meanwhile, the private placement completion is expected to occur by December 17, 2019, and following this, the CDPQ’s equity interest in the company will surge from 41.4 percent to 49.4 percent.

Azure Power is one of the leading independent power producer and developer of solar power. It’s mission is to become the lowest-cost power producer in the world. The company sells solar power on long-term fixed price contracts to its customers, at prices which in many cases are at or below prevailing alternatives for these customers. Also, it developed country’s first private utility scale solar project in 2009.