KKR
KKR set to invest $400 million in Hero Future Energies: Report
New Delhi: KKR and co., a leading US private equity manager, said Friday that it is looking to invest $400 million in Hero Group’s renewables energy company Hero Future Energies (HFE), ET reported.
This would be US private equity manager's single largest investment in the Indian clean energy space.
The investment would make KKR a co-promoter along with founder chairman and managing director Rahul Munjal. Munjal is the nephew of Pawan Kant Munjal, chairman and chief executive officer of Hero MotoCorp, the report stated.
HFE’s wholly owned subsidiaries include Hero Wind Energy Pvt Ltd (HWEPL), Hero Solar Energy Pvt Ltd (HSEPL) and Hero Rooftop Energy Pvt Ltd (HREPL).
The investment will largely be a primary infusion to lower the debt and grow the business, according to the ET report.
KKR will be using its infrastructure fund as the vehicle for this investment, it added.
Decade-old HFE operates in wind, grid-connected solar, rooftop sectors and energy storage and has a portfolio of 1.5 GW of operating assets and another 1.5 GW under construction.
According to its website, the company has a pipeline of 500 MW of large-scale, grid-connected solar projects in Europe, Africa and South Asia.
It aims to have a capacity of 5 GW by 2024. In 2021, HFE had sold a 49 percent stake in two of its projects totalling 500 MW to O2 Power.
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