Hitachi Energy India Ltd, a part of the Japanese multinational corporation Hitachi, has roped two investment banks — ICICI Securities and HSBC — as the company looks to raise Rs 3,000-4,000 crore through qualified institutional placement, people aware of the matter told Moneycontrol.
Hitachi Energy provides products and services for grid automation and grid integration including transformers and high voltage products for power transmission lines. It has customers in utilities, transportation and data centre businesses as well as manufacturing companies.
“They have picked up the two investment banks to start work on their QIP plan, however, the timing for the deal launch will depend on stability in the secondary markets, which have been under pressure lately due to Trump’s tariff measures and foreign investors pulling money out of the stock market,” one of the sources said.
The source added that the external headwinds are not likely to impact Hitachi’s business by much, as the company’s business is domestic infrastructure capex focused, which continues to remain strong on the government side and especially in areas such as renewable energy.
“Emerging opportunities such as data centres, which are seeing massive private sector capex also bode well for their business,” the source said.
Hitachi Energy was formed in 2020, after the Japanese company acquired an 80 percent stake in Swiss firm ABB’s power grid business. In 2022, ABB sold its remaining stake in the company to Hitachi.
Hitachi Energy owns a 75 percent stake in Hitachi Energy India.
The money will be used to fund capex needs, meeting working capital requirements as well as for inorganic growth opportunities, sources said.
The board approved the plan to raise up to Rs 4,200 crore on January 18 and the company is in the process of seeking shareholder approval for the fundraise, which is expected to be closed by February 20.
Emails sent to Hitachi Energy and ICICI Securities did not elicit a response till the time of publication. HSBC declined to comment.
Hitachi Energy India’s financials
December was the best quarter for the capital goods maker on the order book front, with orders worth Rs 11,594 crore.
“The surge can be primarily attributed to a large high-voltage direct current (HVDC) order to transmit renewable energy from Khavda in Gujarat to Nagpur, Maharashtra.
“In addition, the transmission segment led the order book momentum, with power quality and substation projects. Other major contributing segments were transportation followed by industries and data centres,” Hitachi Energy India said in its earnings’ statement.
The December quarter revenue was up 31 percent from the previous year at Rs 1,672.4 crore, while profit after tax grew nearly five times to Rs 137.4 crore.
Operational Ebitda (earnings before interest, taxes, depreciation and amortisation) came in at Rs 168.9 crore, resulting in a margin of 10.1 percent.
Commenting on the outlook for the industry, Hitachi Energy said India’s electricity demand is set to exceed 700 GW by 2047, 2.5 times the current levels.
To meet this voluminous requirement, and its 2030 targets, the country needs to scale up its renewable capacity beyond 50 GW annually, it said. This entails strengthening grid infrastructure and developing localised supply chains, in addition to adding generation capacity. Along with transmission infra build-up, focusing on high-performance sectors like energy storage, green hydrogen, and industries will add more momentum to the overall market growth, the company said in its earnings release.
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