Launched as an autonomous investment platform, RenewShare caters to investors looking to diversify their existing portfolio while being part of the fast-growing RE landscape in India, the renewable energy solutions provider said in a statement.
“Although RE has an impressive growth story, access to sustainable investment opportunities in the sector for most investors is almost non-existent. The RE segment bears the tag of being a particularly valuable asset group for independent ownership and management. We, as an aggregator, strive to solve this problem. By facilitating the reduction of investment card size, “said Animes Damani, founder and CEO, RenewShare.
The platform, during its launch, has already raised a special purpose vehicle (SPV) with assets worth Rs 7 crore and a commitment to an early investment of Rs 10 crore from investors, with RE assets spread across four cities, the statement said.
“With the overall commitment to initial investment of Rs 10 crore, the response from the investor circle has been overwhelming, solidifying our belief in the huge potential and interest in the RE sector.
“Therefore, we will enable transactions worth over 200 rupees per year until 2024 and are confident in helping investors capture 10% of India’s Operating Expenditure (OPEX) projects,” he added.
The platform recruits thematic SPVs, in which similar wind and solar renewable energy projects are integrated after being thoroughly reviewed by a team of experts. Investors have the choice and they can choose an SPV pool with their favorite RE projects based on their risk appetite, it was written.
SPVs listed on RenewShare will initially require an investment of 20 lakh rupees from an investor, it was written.
As a viable alternative to fixed income, the assets listed in SPV are filtered in a way that will generate a rate of return twice the current long-term profit rates of FD offered by the leading Indian banks. The platform will later be made available to retail investors, it was reported.
The Impact Investment Platform will allow multiple investors to invest jointly within a large pool of projects but with lower counterparty risk. The investments made in SPV are divided into a number of RE assets, thus lowering the risk considerably.