Hero Group, KKR to invest $450 million in Hero Future Energies
Hero Groupand KKRhave announced a $450 million investment in the company's renewable energy arm, Hero Future Energies.
- Post this investment,
HFEis valued at $1 billion.
- HFE currently has an operational renewable energy capacity of 1.6 GW and operates in five countries apart from India.
AdvertisementHero Group and American private equity firm KKR have announced an investment of $450 million (approx. ₹3,600 crore) in Hero Future Energies (HFE), the renewable energy arm of the company.
“HFE’s clean energy solutions play an important role in helping companies decarbonize as energy demands continue to grow. We look forward to working closely with HFE’s management team and existing investors, including the Hero Group and IFC, to help HFE achieve its next phase of growth and contribute to the energy transition efforts in India and globally,” said
KKR is not the first to invest in HFE – earlier, International Finance Corporation, and Abu Dhabi Future Energy (also known as Masdar) together picked up a 20% stake in HFE for $150 million, valuing the company at $750 million. KKR’s investment raises HFE’s valuation to $1 billion.
“With this investment, Hero Future Energies will work to accelerate India’s energy transition and contribute to the Indian government's target of generating half the country’s power from non-fossil fuel sources by 2030,” said
Since 2011, KKR has invested over $15 billion in various companies in the renewable energy sector, with an operational capacity of 23 GW at the end of 2021.
HFE says it plans to use the $450 million investment for grid-connected solar and wind power projects, apart from energy storage and green hydrogen solutions.
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