A consortium led by TPG Inc. has signed a formal agreement to buy India's top shadow lender specializing in green financing, underscoring foreign investors' appetite for the country's fast-growing environmental projects.
The investor group, which also includes GIC Pte and ICICI Bank Ltd., will acquire Aseem Infrastructure Finance Ltd. for about 40 billion rupees ($425 million) and merge it with its newly created joint venture entity, according to people familiar with the matter.
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Acquiring Aseem would give the buyers exposure to the largest Indian non-banking finance company focused on green projects. Singapore sovereign wealth fund GIC and TPG already have big investments in renewable energy-backed firms operating in India.
Manish Chourasia from Tata Cleantech Capital Ltd. has been hired to lead the new company, said the people, requesting not to be named because the information is private.
TPG declined to comment. GIC, ICICI, Aseem and Tata Capital did not reply to emails seeking comments. Tata Cleantech was a separate company before it merged with Tata Capital.
Emerging energy-transition technologies typically need low-cost and long-term capital, with some financiers also citing concerns of greenwashing and regulatory constraints. Meanwhile, established industries such as solar and wind power in India have been struggling with land acquisition and poor grid infrastructure.
GIC, TPG and ICICI will collectively inject about 60 billion rupees in their non-banking finance firm that will start operations soon after building out its team, said the people. ICICI will hold around 5% in the new company, according to one of the people.
Six-year-old Aseem, majority owned by India's quasi-sovereign National Investment & Infrastructure Fund, has delivered strong performance. Assets under management grew to 154.3 billion rupees in the year ending March 2025 and net profit rose to a record.
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The firm's portfolio spans 14 sectors such as roads and airports, with climate-friendly funding including solar and wind projects making up 49%, according to its website. Energy-transition investment in India jumped about 15% last year to a record $67.9 billion, according to data compiled by BloombergNEF tracking sectors including electrified transport, clean industry and renewables.
Aseem was seeking investment from global funds ahead of a potential public listing, its Chief Executive Officer Virender Pankaj said last year.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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