Artha Energy Resources on Wednesday announced the launch of RenewShare, a renewable energy investment platform, that enables fractional ownership of renewable energy (RE) assets in the country.
Launched as an autonomous investment platform, RenewShare caters to investors interested in diversifying their existing portfolio while being a part of the fast-growing RE landscape in India, the renewable energy solutions provider said in a statement.
“While RE has an impressive growth story, access to viable investment opportunities in the sector for most investors is virtually non-existent. The RE segment carries the tag of being an extremely expensive asset class to own and manage independently. We, as an aggregator, aim to resolve this problem by facilitating to bring down the ticket size for investments,” Animesh Damani, Founder and CEO, RenewShare, said.
The platform, during its launch, has already enlisted a Special Purpose Vehicle (SPV) with assets worth Rs 7 crore and an early investment commitment of Rs 10 crore from investors, with RE assets spread across four cities, the statement said.
“With the initial total investment commitment of Rs 10 crore, the response from the investor circle has been overwhelming, which solidifies our belief in the huge potential and interest in the RE sector.
“Hence, we will facilitate over Rs 200 crores worth of transactions per annum by FY 2024 and are confident to help investors capture 10 per cent of Indian operating expenses (OPEX) projects,” he added.
The platform enlists thematic SPVs, wherein similar renewable energy projects in the wind and solar segment are combined after being thoroughly vetted by a team of experts. Investors have the choice and can pick a pool of SPVs with their preferred RE projects based on their risk appetite, it stated.
SPVs listed on RenewShare would initially require an investment of Rs 20 lakh from an investor, it stated.
As a viable alternative to fixed income, the assets listed on the SPVs are filtered in a way to generate a 2x rate of return than the current prevailing long-term FD rates offered by leading Indian Banks.
The platform would later be made available to retail investors, it stated.
The impact investment platform will facilitate multiple investors to co-invest within a large pool of projects but with lower counter-party risk. The investments made in an SPV is split across multiple RE assets, thus lowering the risk considerably.