On Wednesday (12th January 2022), Artha Energy Resources announced the launch of RenewShare, a renewable energy investment platform that allows for fractional ownership of RE assets in India. The renewable energy solutions provider said in a statement that RenewShare, which was launched as an autonomous investment platform, caters to investors interested in diversifying their existing portfolio while being a part of India’s fast-growing renewable energy environment.
“While renewable energy has an excellent growth storey, most investors have little access to credible investment possibilities in the industry. The RE sector has a reputation for being an exceedingly costly asset class to acquire and operate on its own. As an aggregator, we want to help solve this problem by making it easier to reduce the size of investment tickets.” RenewShare’s Founder and CEO, Animesh Damani, stated.
The platform has already attracted a Special Purpose Vehicle (SPV) with assets worth Rs 7 crore and an early investment promise of Rs 10 crore from investors, according to the release, with RE assets scattered across four cities.
“With an initial total investment commitment of Rs 10 crore, the investor response has been overwhelmingly positive, confirming our trust in the RE sector’s enormous potential and interest.” “As a result, by FY 2024, we expect to facilitate over Rs 200 crores in transactions, and we are certain that we will be able to assist investors in capturing 10% of Indian operational costs (OPEX) projects,” he added.
The platform includes theme SPVs, which pool together similar renewable energy projects in the wind and solar sectors after being thoroughly reviewed by a team of specialists. It added that investors have the option of selecting a pool of SPVs with their chosen RE projects based on their risk appetite. It added that SPVs listed on RenewShare would demand an initial investment of Rs 20 lakh from an investor.
The assets listed on the SPVs are vetted in such a way that they create a 2x rate of return over the present prevailing long-term FD rates offered by prominent Indian banks, making them a viable alternative to fixed income. It was stated that the platform would later be made available to retail investors.
The impact investment platform will allow multiple investors to pool their funds and invest in a large number of projects while reducing counter-party risk. The risk of investing in an SPV is significantly reduced because the funds are spread among many RE assets.
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Resource: Economic Times
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