Launched as a standalone investment platform, RenewShare is aimed at investors wishing to diversify their existing portfolio while becoming part of India’s rapidly growing renewable energy landscape, the renewable energy solutions provider said in a statement.
“While RE has impressive growth, access to viable investment opportunities in the sector for most investors is virtually non-existent. The RE segment carries the label of being an extremely expensive asset class. to be independently owned and operated. We, as an aggregator, aim to solve this problem by making it easier to reduce the size of the ticket for investments,” said Animesh Damani, Founder and CEO of RenewShare.
The platform, when launched, has already enlisted a special purpose vehicle (SPV) with assets worth Rs 7 crore and an early investment commitment of Rs 10 crore from investors, with RE assets spread across four cities, according to the release.
“With the initial total investment commitment of Rs 10 crore, the response from the investor circle has been overwhelming, which reinforces our belief in the huge potential and interest of the renewable energy sector.
“Therefore, we will facilitate more than Rs 200 crore transactions per year by FY2024 and are confident to help investors capture 10% of India’s operating expenditure (OPEX) projects,” he said. -he adds.
The platform uses themed SPVs, in which similar renewable energy projects in the wind and solar segments are combined after being carefully reviewed by a team of experts. Investors have a choice and can choose an SPV pool with their preferred RE projects based on their risk appetite, he said.
SPVs listed on RenewShare would initially require an investment of Rs 20 lakh from an investor, he said.
As a viable alternative to fixed income securities, assets listed on SPVs are screened to generate a rate of return 2x higher than prevailing long-term FD rates currently offered by major Indian banks. The platform will then be made available to retail investors, he said.
The impact investing platform will allow multiple investors to co-invest in a large pool of projects, but with lower counterparty risk. Investments made in an SPV are spread across multiple RE assets, thereby significantly reducing risk.