Norfund Invests Additional $20 Million in India's SAEL Ahead of IPO

Norfund Boosts Investment in Indian Renewable Energy Sector

Norway's state-owned investment fund, Norfund, has announced an additional investment of $20 million in SAEL Industries Ltd., a prominent Indian renewable energy company. This latest capital injection increases Norfund's total investment in SAEL to $130 million, signaling strong international confidence in India's burgeoning clean energy market. The investment is structured through compulsorily convertible preference shares, which are slated to convert into equity once SAEL lists on Indian stock exchanges.

Expansion of Biomass and Solar Projects

The funds are earmarked to accelerate SAEL's ambitious expansion plans in both biomass and solar power projects across India. SAEL's current clean energy portfolio is substantial, encompassing 8.3 gigawatts (GW) of solar projects, which are either operational or under development. The company also boasts 3.5 GW of solar module manufacturing capacity and operates 11 biomass power plants across Punjab, Rajasthan, and Haryana, contributing over 165 megawatts (MW) of agri-waste-to-energy capacity.

Furthermore, SAEL has outlined plans to invest ₹8,200 crore (approximately $954 million) into establishing an integrated 5 GW solar cell and 5 GW solar module manufacturing facility in Greater Noida, Uttar Pradesh. This strategic move aims to bolster domestic solar manufacturing capabilities and reduce reliance on imports.

Anticipated Initial Public Offering (IPO)

This significant investment from Norfund comes as SAEL Industries Ltd. prepares for its Initial Public Offering (IPO). The conversion of the preference shares into equity upon listing underscores the long-term commitment of Norfund to SAEL's growth and market presence. The company's financial performance has shown robust growth, with revenue from its biomass and independent power production businesses nearly doubling to ₹687 crore (approximately $80 million) in fiscal year 2025 from fiscal year 2023. SAEL aims to further increase this revenue to ₹3,094 crore (approximately $361 million) by fiscal year 2027.

Strategic Importance for India's Green Transition

Norfund's continued investment highlights the critical role of international capital in supporting India's renewable energy transition. The Norwegian Climate Investment Fund, managed by Norfund, has previously invested in other Indian renewable projects, including a partnership with ReNew Power. These investments are crucial for meeting India's ambitious climate targets and fostering sustainable development by reducing carbon emissions and improving air quality through initiatives like utilizing agricultural waste for energy.