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CDPQ ups stake to 50% in power co

MUMBAI: Canadian pension fund Caisse de depot et placement du Quebec (CDPQ) has increased its stake in Apraava Energy to 50% from 40%, making it an equal shareholder in the Indian power producer. CDPQ bought the 10% stake in Apraava from existing shareholder Hong Kong-listed CLP Holdings for $83 million. The stake consolidation comes three and a half years after it first checked into Apraava. That time, it had paid $365 million for the 40% stake.
The latest move gives Canada’s second-largest pension fund increased governance rights — equal to those of CLP — in Apraava. Commenting on the change in shareholding structure, Apraava MD Rajiv Ranjan Mishra said, “This is a vote of confidence from CDPQ since they have been invested in the company for almost three and a half years. Also, with the company becoming a joint venture, CLP will not be loaded with the debt of Apraava. This will give additional freedom to Apraava to increase its investment significantly so that it can double the size in the next three years.”
Founded in 2002, Apraava (then known as CLP India) has an installed capacity of 3,150MW currently, which includes 924MW of wind and 250MW of solar. It also has two power transmission assets. Apraava has invested more than Rs 18,000 crore in the country to build its portfolio.
CDPQ, which opened its India office in 2016, has so far invested more than $7 billion here. Its investments include Piramal Enterprises, Kotak Mahindra Bank and Maple Highways.
Sustainable energy has been attracting significant investments in the recent past. IHC of Abu Dhabi invested Rs 3,850 crore for a 1.3% stake in Adani Green Energy, while BlackRock Real Assets and Mubadala Investment Company announced an investment of Rs 4,000 crore in Tata Power’s renewable energy business for a 11% stake.



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