Morgan Stanley Infrastructure Partners, a unit of US investment banking major Morgan Stanley (NYSE:MS), has agreed to invest INR12bn (USD210m/EUR167m) in Continuum Wind Energy, acquiring a majority stake in the Indian wind power company, the Times of India reported today.
Arvind Bansal, the investment banker who co-founded Continuum and serves as its chief executive, confirmed the deal for the newspaper but would not comment on its financial parameters. The Times of India did not say where it got its information on the size of the investment. Continuum was advised by o3 Capital, the newspaper said, adding that the agreement was signed last week.
Continuum was set up three years ago by Bansal and Vikas Saraf, a director at Indian conglomerate Essar Group. The company was created through the acquisition of the Kutch power generation business of Danish-based wind power giant Vestas Wind Systems A/S (CPH:VWS). Continuum operates 36MW of wind power capacity in Kutch and Sangli and has reached the advanced stage of installing 183 MW, with another 300MW in the pipeline. As Bansal informed the Times of India, the investment from Morgan Stanley will allow Continuum to build large-scale, high-quality wind energy assets that will address the shortage of power in India.
While conventional power production has suffered from domestic coal shortage and costly imports, India’s wind power sector has seen its capacity grow by nearly 30% annually in the past decade. The country ranks at number five globally in terms of installed capacity, boasting around 16,000 MW, the newspaper added.