According to Bank of America, Indian corporations, international investors, and sponsors might invest $800 billion in India’s green energy sector over the course of the next ten years. According to Debasish Purohit, co-head of investment banking for Bank of America in India, the nation is a logical choice for strategic investors seeking net-zero goals. The bank anticipates investing $250 billion in renewable energy, $250 million in power sources, and $300 billion in equipment, systems, and grid support infrastructure. The Tatas, Adani, and Reliance Industries have all laid out their investment strategies for green energy.
Debasish Purohit, co-head of investment banking for Bank of America in India, said that over the next ten years, investments in the country’s green energy sector might total up to $800 billion.
Over the next ten years, the energy transformation topic will draw $800 billion in investment. We anticipate investments throughout the whole spectrum of the energy transformation, including green hydrogen, storage, and component manufacturing, from Indian corporates, international strategic investors, and sponsors. Given its size, India is a logical choice for strategic investors seeking net-zero goals, according to Purohit.
The investment bank predicts that investments in the renewable energy sector will total around $250 billion over the next ten years, while investments in batteries and grid infrastructure support may total $250 million. Other segments, such as green hydrogen, equipment, and systems, may receive a total investment of $300 billion.
Every major Indian corporation has revealed grand aspirations to enter the green energy market.
For example, Reliance Industries aims to achieve carbon neutrality by 2035.
Reliance Industries acquired $1.5 billion in acquisitions, according to a 10 April note from Goldman Sachs, to increase capacity in solar, batteries, and hydrogen, which would offset greenhouse gas emissions from its oil and petrochemicals sector. According to Goldman’s research, RIL has also concentrated on producing polysilicon, wafers, cells, modules, electric cars, grid storage batteries, electrolyzers, and fuel cells. Other companies, including the Adani group and the Tatas, have also provided investment plans for green energy.
Purohit stated, “We have over 70% market share in renewable M&A over the previous 5 years because of our early concentration in this category.
Bank of America has provided guidance on various transactions involving renewable energy and green energy for more than $5 billion in recent years. For instance, it assisted TPG Rise with its $1 billion investment in Tata Motors’ electric car division and Actis LLP with the $1.6 billion sale of Spring Energy to Shell.
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Large conglomerates like Tata Group, Mahindra Group, and TVS Group have been looking to raise funds for their EV companies over the past year.
Block transactions and the majority of the IPO market across segments have also experienced an uptick in activity recently, according to Purohit. Tencent received advice on prohibiting trade in Policybazaar from Bank of America. Additionally, it has overseen block trades involving Zomato Ltd.
According to Purohit, there has been a value reset for the consumer technology market.
“New private raisings have been restricted to select top-quartile businesses, where while fundamental capitalization levels have remained secured, numerous have come off,” he added, referring to consumer tech companies.
“Block deals in the listed space have continued, but transaction amounts have decreased, presumably an indication of sellers preferring to capitalize substantially while holding the potential benefits from strengthening market conditions,” he stated.
