Ayana Renewable, a key player in India’s renewable energy sector, is set to raise ₹150 crore (approximately $17.4 million) in debt from IL&FS Mutual Fund. This fundraising effort follows closely on the heels of a share purchase agreement the company signed with the ONGC-NTPC joint venture last month.
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 (NCDs). Each debenture is priced at ₹10 lakh, bringing the total fundraising amount to ₹150 crore. These funds will be allocated for debt refinancing, financial support for its subsidiaries in renewable projects, and other infrastructure-related expenses. The debentures will have a three-year tenure from the initial drawdown date.
As an independent power producer (IPP), Ayana Renewable focuses on developing and managing solar and wind energy projects backed by long-term power purchase agreements (PPAs). The company, supported by the National Investment and Infrastructure Fund (NIIF) and international investors, continues to fund its growth through a mix of equity, debt, and bonds. Additionally, it is actively exploring hybrid energy solutions, battery storage, and green hydrogen initiatives to diversify its portfolio.
The fundraising comes amid a major ownership transition. NIIF, British International Investment (BII), and Eversource Capital recently agreed to sell their entire stake in Ayana Renewable to ONGC NTPC Green Pvt. Ltd. (ONGPL), a 50:50 joint venture between ONGC Green Ltd. (OGL) and NTPC Green Energy Ltd. (NGEL). The deal, valued at $2.3 billion, recently received approval from the Competition Commission of India (CCI).
Despite a modest 4% revenue growth to ₹856 crore in FY24 from ₹823 crore in FY23, Ayana Renewable experienced a significant profit decline of 42.3%, with net earnings falling to ₹45 crore. The latest fundraising move is expected to strengthen its financial position amid these transitions.
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