Augment Infrastructure has announced an equity purchase of CleanMax, the leading provider of renewable energy solutions such as rooftop solar to the commercial and industrial (C&I) market. The US investment company is purchasing a controlling interest in CleanMax for Rs 165 billion in stock.
Augment is acquiring CleanMax’s existing stakes in Yellow Bell Investment Ltd (a subsidiary of Warburg Pincus, a renowned global private equity firm focusing on growth investment) and International Finance Corporation (IFC). Augment will also invest primary capital in CleanMax to finance the company’s expansion plans.
To meet the demands of corporate clients, the business is planning additional investments in offsite renewables such as wind-solar hybrid projects in India, as well as standalone solar farms. UK Climate Investments (UKCI), which sits on CleanMax’s board, would remain an investor. This investment will be used to drive the company’s expansion in the C&I renewable energy market across India, the Middle East, and Southeast Asia.
This is Augment Infrastructure’s first investment in an Indian C&I renewable energy company. The investment is expected to accelerate CleanMax’s investment in the C&I renewable energy space in India, Middle East, and South East Asia. The investment will boost CleanMax’s strategic expansion efforts and meet its target of adding 400 MW of new capacity annually. The company also has the vision to enhance its operating capacity from 740 MW to 2 GW across a period of three years.
CleanMax, which was launched in 2011, currently has almost 150 customers, including major businesses such as Facebook, Adobe, Cargill Foods, Volvo, Tata Group, Mahindra Group, Grasim, Manjushree, and others. Rothschild & Co acted as the company’s and shareholders’ counsel on the transaction.