Ayana Renewable, a prominent player in India’s renewable energy sector, has recently announced its plan to raise Rs 150 crore (approximately $17.4 million) through non-convertible debentures from IL&FS Mutual Fund. This strategic financial move comes hot on the heels of their significant share purchase agreement with the ONGC-NTPC Joint Venture (ONGPL), signaling a period of robust growth and strategic realignment for the company.
Details of the Debt Issuance
According to regulatory filings accessed from the Registrar of Companies (RoC), Ayana Renewable’s board has approved a special resolution to issue 1,500 non-convertible debentures, each with a face value of Rs 10,00,000, to secure the Rs 150 crore funding. The tenure of these debentures is set for three years from the initial drawdown date, providing Ayana with a stable financial runway for its planned initiatives.
Strategic Utilization of Funds
The funds raised will be strategically allocated to several key areas, including debt refinancing, providing support to subsidiaries engaged in renewable energy projects, and covering interest, loans, and other eligible infrastructure needs. This diversified utilization strategy reflects Ayana’s commitment to strengthening its financial position and supporting its ongoing and future projects.
Ayana’s Growth Trajectory and Recent Developments
Ayana Renewable is an asset-heavy Independent Power Producer (IPP), focusing on developing and managing solar and wind energy projects with long-term Power Purchase Agreements (PPAs). Backed by the National Investment and Infrastructure Fund (NIIF) and other global investors, Ayana has consistently pursued growth through a combination of equity, debt, and bond financing.
A significant development in Ayana’s journey is the recent share purchase agreement where NIIF, British International Investment (BII), and Eversource Capital agreed to sell their 100% stake to ONGPL for an enterprise value of $2.3 billion. This acquisition, which has received approval from the Competition Commission of India (CCI), marks a major milestone for Ayana and underscores its growing significance in the renewable energy landscape.
Financial Performance and Future Outlook
While Ayana Renewable experienced a modest 4% year-on-year growth in revenue, reaching Rs 856 crore in FY24 from Rs 823 crore in FY23, its profits saw a notable decline of 42.3%, dropping to Rs 45 crore during the same period. Despite this, the company’s strategic initiatives and the recent funding injection are expected to bolster its financial resilience and drive future growth.
Ayana’s focus extends beyond traditional solar and wind projects, with a keen interest in exploring hybrid energy solutions, battery storage, and green hydrogen. This forward-looking approach positions the company to capitalize on emerging opportunities in the evolving renewable energy market.
Looking Ahead
The Rs 150 crore debt funding from IL&FS Mutual Fund, coupled with the recent acquisition by ONGPL, sets the stage for a new phase of growth and expansion for Ayana Renewable. As the company continues to leverage its strong foundation and strategic partnerships, it is poised to play a crucial role in India’s transition to a sustainable energy future. Focusing on diversified energy solutions and financial stability will be key factors in Ayana’s continued success in the dynamic renewable energy sector.
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