Today, the Indian renewable energy company CleanMax is listing on India’s stock exchanges.
For Impact Fund Denmark and the Danish pension funds behind the Danish SDG Investment Fund, the listing marks a significant milestone. The investment demonstrates the fund’s ability to identify and develop high growth companies to a scale where a stock market listing becomes possible. It also shows that it is possible to generate competitive returns for Danish pension savings while at the same time accelerating the expansion of green energy in India.
The Danish SDG Investment Fund invested DKK 186 million in CleanMax in 2021. The company is one of India’s leading platforms for developing and selling renewable energy solutions to commercial and industrial customers. Over four and a half years, CleanMax has expanded its capacity from around 472 MW to more than 2.5 GW of green power, and is now raising capital on the stock market to support its future growth.
India is an attractive growth market due to its economic development and a rapidly expanding middle class. Energy is a key investment area because demand for green and affordable electricity is rising sharply. In India, 70 to 75 percent of electricity generation still comes from coal. New solar and wind projects therefore make a real difference, both in terms of CO2 reductions and security of supply.
When we invest one public Danish krone, we can mobilise four kroner in private capital. In other words, one tax krone becomes five kroner of investments around the world. This investment shows how Impact Fund Denmark and Danish pension funds, family offices and foundations can scale the green transition together.
At full exit, the investment is expected to deliver a return equivalent to roughly a doubling of the original capital and an attractive return for investors.
India is a highly interesting market because of its economic development, and you can see this clearly in renewable energy investments. Electricity consumption in India is among the fastest growing in the world, driven by a growing middle class. It is both fascinating and alarming when you consider that more than 70 percent of electricity generation still comes from coal today. It therefore makes strong sense for us to invest in solar and wind in India, which are both greener and cheaper than new coal fired power plants.
The Danish SDG Investment Fund was established by Impact Fund Denmark in partnership with the Danish pension funds and asset managers PKA, PensionDanmark, PFA, ATP, P+, PenSam and Secure Spectrum.
Managing Director and Co-head of Green Energy & Infrastructure
Thomas Hougaard
+45 33 63 75 46
Senior Investment Manager
Ralf Rulka
+45 33 44 12 62
