Piramal Enterprises Ltd on Tuesday signed a memorandum of understanding (MoU) with Canada's biggest public pension fund, Canada Pension Plan Investment Board (CPPIB), to co-sponsor a $600 million (Rs 4,163 crore) renewable energy-focused Infrastructure Investment Trust (InvIT).
Ajay Piramal, Chairman of Piramal Group, in a public statement said: "We are pleased to partner with CPPIB on the launch of the first ever InvIT in India, focused on renewables." The InvIT would acquire up to 1.5-2GW of stable and cash generating renewables assets, the statement added.
The Indian conglomerate said that initially CPPIB will provide $360 million and Piramal will contribute $90 million to the fund. The remaining amount will be raised from other investors.
Both Piramal and CPPIB will hold up to 75% of the units. The Mumbai-based firm will own a 15 per cent stake in the trust, while Canada's pension fund will hold up to 60 per cent. Additionally, Piramal Enterprises would also act as the sole Project Manager and Investment Manager for the proposed InvIT.