LGT Lightstone plans to invest up to $50m in Canadian firm AMP’s India unit

Photo: Mint

Attracted by India’s green energy trajectory, LGT Lightstone Aspada plans to invest up to $50 million in Canadian firm AMP Solar Group’s India unit, said four people aware of the development.

The India-focused impact investment platform will acquire a significant minority stake in AMP Energy. The investment, to be announced shortly, will help form the beachhead for Lichtenstein investor LGT, a bank and fund manager with around $220 billion of assets, to foray into the Indian subcontinent’s energy market.

LGT Lightstone Aspada, the world’s largest family-owned private banking and asset management group, has already invested around $180 million in India, including a $12 million investment in Lithium Urban Technologies Pvt. Ltd—India’s first electric cab service. Going forward, it wants to focus on India’s energy-efficiency market, which is estimated at 1.5 trillion, in areas such as financing.

“The transaction envisages an option to invest up to $50 million over the next 2-3 years. The transaction has already closed for the first infusion for a sizeable minority stake,” said Vignesh Nandakumar, partner, LGT Lightstone Aspada. AMP Energy is a global renewable energy utility with India, the US, Canada and Australia as its core markets. The local platform was co-founded by Pinaki Bhattacharyya, chief executive officer for India, and caters to commercial and industrial (C&I) customers from assets using solar, wind and storage. EY provided the tax advisory for AMP Energy India. “Set up around three years ago, AMP Energy India has raised around $60 million of capital from institutional investors and has a 500MW portfolio across 15 states. It aims to cross one gigawatt (GW) in the next two years,” said a second person aware of the deal, requesting anonymity.

Queries emailed to AMP Solar Group and EY on 14 October did not elicit any response.

“At LGT Lightstone Aspada, we believe that there is a significant opportunity in India and other markets to support businesses and consumers to move towards a more sustainable environment. Towards that thesis, we look to invest in businesses that can deliver solutions in a commercially viable manner to help industry and consumers reduce their carbon footprint, and at the same time, evolve these ecosystems to reinforce an environmentally sustainable approach to growth,” said Nandakumar.

The payment delays by state-run power distribution companies range from two months to 15 months, besides there are problems with non-allocation of land to wind-power projects, as well as transmission and connectivity challenges.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.