Posted on September 19, 2013
Intellecap acted as the sole advisor for an equity deal between Punjab Renewable Energy Systems and responsAbility.
Punjab Renewable Energy Systems (PRES) is one of India’s leading organised fuel aggregation and supply companies focused on agriculture residue. It has operations in multiple locations across India. Swiss-based responsAbility Investments AG is one of the world’s leading independent asset managers specializing in development-related sectors such as finance, agriculture, health, education and energy in emerging economies. It currently has assets under management of USD 1.4 billion.
responsAbility has acquired a minority stake in PRES for an undisclosed amount, and will support the current management team via representation on the Company’s Board. This investment will go towards driving PRES’ planned expansion into new locations in India and abroad.
India has a high energy deficit of more than 9%, and a large import bill dominated by fossil fuels that contributes to 15% of its current account deficit. In addition, an estimated 100 million tons of agriculture residue is burnt off every year causing high levels of pollution. Punjab Renewable Energy Systems offers a simultaneous solution to both problems by providing an organized supply chain to cater to an industry where fuel supply shortages are a concern, by aggregating, processing and distributing biomass efficiently. Furthermore, the Company provides an additional source of rural income generation, a potential that could be over half of the FY13 MGNREGA budget of INR 330 billion.
Intellecap’s Investment Banking Practice offers a range of services that include raising capital and offering corporate finance advice to growing businesses in India. We have been consistently rated amongst the top 3 most active investment advisors in India. With significant investor relationships that span the globe, we have helped clients to raise over INR 11 billion in equity.
Pic credit: NRCS Soil Health, Flickr