Helping the expansion of one of the leading biomass supply chain management companies in India to combat the climate crisis

Clients

PRESPL

Geography of work

Global

Sector

Energy

Project

To help PRESPL, one of the leading biomass supply-chain management companies in India for its fund raise activity to bring in transformative impact by helping them expand their business, and drive transformative impact in the climate change landscape.

Challenge

India has an increasing demand for energy stemming from its growing population and expanding economy. This increased energy demand is mostly being supplied by fossil fuels with only 15% of supplied energy coming from renewable energy sources. India must develop greener alternatives to help meet the growing demand and to reduce its greenhouse gas emissions.

Punjab Renewable Energy Systems is helping fill a financing gap for distributed renewable energy that can combat the climate crisis through energy efficient solutions and can contribute significantly to efforts to reduce carbon emissions in India by providing a more sustainable alternative to fossil fuels.

Intellecap Investment Banking practice backed PRESPL’s vision and wanted to help it accelerate its efforts in contributing significantly in trying to meet the growing demand for biomass fuel from India’s rapidly expanding bio-energy industry, while providing a range of operation & maintenance, and other technical services, to the industry.

Outcome

Punjab Renewable Energy Systems Pvt. Ltd. (“PRESPL”), one of the leading biomass supply-chain management companies in India, has received a guaranty backed loan of $10 million from US International Development Finance Corporation (DFC).

This guaranty backed loan will be utilized towards construction of 7 briquettes manufacturing plants and finance working capital needs of the company. The project is expected to create a positive development impact by increasing the production of biomass fuel, a fossil fuel alternative from 250,000 MT to over 1,950,000 MT within the next five years.

More about PRESPL

Punjab Renewable Energy Systems Private Limited (PRESPL), is involved in the collection, storage and processing of agricultural residues and the production of biomass briquettes and pellets to meet the growing demand for biomass fuel from India’s rapidly expanding bio-energy industry. PRESPL also provides a range of operation & maintenance, and other technical services, to the industry. In the last decade, since its inception, PRESPL has impacted more than 1000+ villages, 500+ Village Level Entrepreneurs (VLEs), 2500+ jobs creation, and Carbon Footprint reduction of approx. 0.25 MMT.

Transformative Impact by Investment Banking:

Intellecap Investment Banking Team was the sole and exclusive transaction advisor and started engaging with Punjab Renewable Energy Systems Pvt. Ltd to help them raise debt capital.

Intellecap helped PRESPL with preparing the financial business plan and articulate the opportunity in a concise manner. Intellecap shortlisted the investors who would be most likely to invest in PRESPL { Punjab Renewable Energy Systems Pvt. Ltd and front ended the investor interactions and valuation discussions.

Full support was also provided to PRESPL during legal and financial due diligence being conducted on behalf of the incoming investors. Intellecap also led negotiations for the transaction documents and helped PRESPL to raise capital.
These fund raise transactions from USDFC further strengthen Intellecap’s support & credentials in the clean energy space. In addition, the project will help source its biomass materials from smallholder farmers and create jobs in states in India. PRESPL received part disbursement of the facility this month.