In September 2013, Intellecap’s Investment Banking Practice announced the successful closure of funding for Punjab Renewable Energy Systems Private Limited (PRES) from Swiss-based responsAbility Investments. Intellecap acted as the sole advisor to this deal.
PRES is one of India’s leading organised fuel aggregation and supply companies focusing on agriculture residue, with operations in multiple locations across India. 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. PRES 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 successfully scoped the nascent and highly fragmented market of biomass supply chain and assisted PRES in formulating their growth strategy. During the fund raising process, Intellecap approached various types of investors, from impact focused funds to sector-oriented PEs, on the back of its strong investor relationships. The team worked with tight timelines for closure as the growth capital sought by PRES was required prior to the company’s collection season. The arduous efforts resulted in two competitive term sheets of which the company chose to culminate the deal with responsAbility Investments AG due to a better strategic fit and common vision. The deal closure period was less than 2 months from the termsheet date, highlighting Intellecap’s dedication to consummate the fund raising within client prescribed timelines.
Swiss-based responsAbility Investments is one of the world’s leading independent asset managers specializing in the development-related sectors of emerging economies such as finance, agriculture, health, education and energy. Founded in 2003, responsAbility currently has assets under management of USD 1.4 billion, which are invested in over 400 companies in around 80 countries. responsAbility is headquartered in Zurich and has offices in Mumbai, Lima and Nairobi.