Narain Karthikeyan, India’s 1st Formula One Driver and his family are planning to buy Inox Group’s business of wind power generation for an amount of Rs. 1,200 crore. Inox Wind is a hardware manufacturer company in the specialization of blades, turbines, generators and towers.
Inox Renewables, which is a producer of independent power, has agreed for PPAs (Power Purchase Agreements) with the state electricity board only for the sale of wind energy. Across the states, Rajasthan and Maharashtra, they have installed wind energy generation, which is approximately 300MW
The organization Lean Green Energy (LGE), which is based out of Coimbatore and founded in the year 2006, is looking out for better funding options from various sources for the deal. They are in the stage of negotiations and also want to announce before the end of the present financial year, added the resources. And a company like JP Morgan has a major stake in the organization LGE and it also plays an important role in the company’s decision.
A spokesman for Lean Green Energy said that they had started a discussion with various international and domestic banks so that they can fund short term loans for the deal. In addition, there are separate negotiations by UK Climate Investment LLP for a joint project between the UK’s business department and Green Investment Bank of UK. Profits from these equity investments will possibly be used to exchange shorter loans at a later stage.
The company is promoted by Inox Group, which owns businesses as diverse as energy generation, wind turbine manufacturing, cinemas and industrial gases.
When the Economic Times tried to approach the director and group head of the company Gujarat Fluorochemicals, the firm made it clear that they are not ready to comment on the rumors.
Narain Karthikeyan said he will not be able to give a statement or announcement about the present transaction because he only wants to focus on marketing strategy for Leap Green. Even his brother Rajeev Karthikeyan, who is the Managing Director of Leap Energy, did not reply to any of the email requests. UK Green Investment Bank and JP Morgan’s spokesman failed to comment.
A person from the organization said – “The transaction may close only by the end of this fiscal given the number of regulatory approvals required for such business transfers as agreements entered into with state electricity boards also need to be transferred to the acquirer”.
Leap Green Energy has wind generation capacity of 453 MW and also signed several Power Purchase Agreements.