US-based Augment Infrastructure to acquire Mumbai-based CleanMax with Rs 1650 crore equity investment

Mumbai-based rooftop solar developer CleanMax, is set to be acquired by a US-based investment firm, Augment Infrastructure. The deal will have Augment picking up a majority stake in CleanMax for an equity consideration of Rs 1,650 crore.

According to a media statement, CleanMax will use this investment to accelerate its growth in the commercial and Industrial (C&I) renewable energy space in India, Middle East, and southeast Asia.

“This investment will enable CleanMax to consolidate its leadership position in the business-to-business renewable energy sector, expand to new geographies and focus on organic and inorganic growth,” said Nikunj Ghodawat, the chief financial officer of CleanMax.

The primary capital raised by CleanMax will support the expansion efforts to build the customer base and add about 400 megawatt (MW) of new capacity annually. CleanMax aims to enhance operating capacity from 760 MW to about 2,000 MW in the next three years.

Ghodawat further added that subsequently, Augment Infrastructure will become the largest investor in CleanMax, while their previous investors Warburg Pincus and International Finance Corporation (IFC) would be opting for an exit.

“We are happy to note that both global investors will secure an exit, which is always a responsibility of the management team to deliver upon. I am also delighted to note that over 150 CleanMax colleagues, present and past, are securing a part exit on their ESOPs,” said Kuldeep Jain, founder and managing director of CleanMax.

The rooftop firm said that this investment would involve a purchase of the stake held by Yellow Bell Investment, an affiliate of global private equity firm Warburg Pincus, and IFC along with an investment of primary capital in the company to fund its growth pipeline. While UK Climate Investments will continue as an investor and Board member.

CleanMax has new investments lined-up in off-site renewables such as wind-solar hybrid projects in Karnataka, Gujarat, and Maharashtra and also in standalone solar farms in Haryana, UP, Chhattisgarh, Maharashtra and Tamil Nadu to serve the needs of corporate customers.

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