“TPG is working with investment banks Bank of America and Investec to manage the sale of its 52% stake in Fourth Partner. It is in talks with private equity investors, and pension and sovereign wealth funds, for the stake sale. Other investors, such as Norwegian sovereign fund Norfund, and founders, will continue to hold their stakes," one of the two people said on condition of anonymity.
“The stake sale is likely to fetch TPG around $300 million, but the overall deal size could be larger including some fresh equity investment by the incoming investor," he added.
Fourth Partner, Bank of America and TPG declined to comment. An email sent to Investec did not elicit any response.
Founded in 2010, as a solar component, and engineering, procurement and construction (EPC) firm, Fourth Partner caters to commercial and industrial businesses.
The company operates in Vietnam, Indonesia, Bangladesh and Sri Lanka, besides India, offering solutions for renewable energy, such as solar and wind, battery storage, wind-solar hybrid, energy trading and electric vehicle charging infrastructure.
It has over 950 megawatts installed renewable capacity and caters to over 200 clients.
Fourth Partner posted revenues of ₹1,018 crore in FY22, up from ₹459 crore in the previous year, according to a 31 October report by rating agency Icra. It reported a net profit of ₹7 crore in FY22, rising from ₹53 lakh in the previous year.
“While the standalone operating income improved 122% to ₹1,018 crore in FY22, operating profit margins declined to 1.2% from 2.7% in FY21 due to the relatively high overhead expenses and slower-than-expected scale up in execution of large projects due to regulatory challenges," Icra said in its report.
