The funding will translate into turnkey contract orders worth around ₹5,700 crore for the parent company.
IPO-bound Rays Power Infra Ltd said A.P. Moller Capital will invest ₹1,350 crore in its subsidiaries or special purpose vehicles (SPVs) undertaking renewable energy projects. The development, announced in Mumbai, is expected to result in turnkey construction and development contracts worth around ₹5,700 crore for the parent company.
Ketan Mehta, Managing Director and Chief Executive Officer of Rays Power Infra, said the investment will be used to jointly own and operate projects that are currently under development, for which Letters of Intent (LoIs) have already been secured, along with land acquisition and grid connectivity.
“A.P. Moller Capital will be investing ₹1,350 crore to jointly own and operate some of our projects that are under development. These projects already have LoIs in place and the necessary land and connectivity completed,” Mehta said.
He clarified that the investment will be made directly into the subsidiaries or SPVs and not into Rays Power Infra, which is preparing for its IPO. However, the funding will create significant value at the parent company level, as Rays Power Infra will execute the entire turnkey construction, EPC and development work for these projects.
“As a result, this investment will lead to turnkey contract orders worth about ₹5,700 crore for Rays Power Infra, since all construction, EPC and development activities will be carried out by the parent company,” Mehta added.
Denmark-based A.P. Møller Capital, part of the integrated logistics group A.P. Moller–Maersk, will hold a majority equity stake in the project SPVs, while Rays Power Infra will retain minority ownership.
Mehta said the association with a marquee investor ahead of the IPO further strengthens the company’s corporate governance and credibility. “It reinforces confidence among public market investors as well. This is a significant milestone for us as we reach an inflection point in our growth journey, and it positions us strongly for the next phase of expansion,” he noted.
Rays Power Infra plans to raise up to ₹1,150 crore through its IPO, expected to take place in January.
The company currently operates a 12 GW renewable energy platform, of which 2 GW has been commissioned and 2.5 GW is under construction. The remaining 7.5 GW of solar and wind projects are at various stages of development. Rays Power Infra has already secured LoIs for 1.6 GW of 25-year power purchase agreements (PPAs).
The company develops solar, wind and hybrid power projects through multiple subsidiaries or SPVs, supplying power to central government entities and private off-takers. Its key clients include NTPC, NHPC and Indian Railways. The company is also bidding for projects with Amazon, Google and data centres.
With the A.P. Moller Capital investment, the company expects to add another 1.5 GW to its portfolio, while indicating that the overall project pipeline remains much larger. The company said additional capital raises are planned over the next few years to support expansion across solar, wind, hybrid, round-the-clock and battery-backed renewable energy projects.
Supplying renewable energy on a round-the-clock basis remains a key focus area for the company. The objective is to deliver firm renewable power throughout the day and across seasons, addressing concerns around intermittency. The company said it will soon announce a round-the-clock renewable power project it has secured in this segment.