Essar Power has appointed Avendus Capital as an advisor to raise funds as a structured equity deal, according to three sources familiar.

The Mumbai-based conglomerate is looking to raise about USD 100m-USD 125m for a 1.2 GW development pipeline, one of the sources said, adding that Avendus aims to conclude a transaction in about six months from now.

The fundraise was launched in late April, two others said, with one adding that indicative offers are due around the third week of May.

Essar Power denied that it is looking for equity funding.

Essar Renewables, the clean energy arm of Essar Power, last year won 900 MW in an auction held by Indian government-owned enterprises SJVNL and NHPC.

This January, Essar said that it had signed an agreement with the Maharashtra state government to develop 2 GW of renewables projects with an investment of INR 80bn (USD 953m).

Essar announced its entry in the renewables sector in 2021 with a 90 MW solar plant in Madhya Pradesh state in central India.

The company plans to achieve 6 GW of renewables consisting of both solar and wind energy, as well as pumped hydro storage to ensure round-the-clock supply, according to a January 2025 Essar Group presentation.

It is also planning a lithium refinery and battery assembly plant, as well as a solar module manufacturing facility, according to the presentation.

Essar Power operates a 1.2 GW coal-fired plant in Salaya in Jamnagar district in Gujarat state.

It had six other assets in India, which were sold to buyers including Adani Power and Arcelor Mittal Nippon Steel India.

Overseas it operates a 85 MW cogeneration plant in Canada and is preparing to build what it claims will be Europe’s first hydrogen-ready heat and power project.

Avendus did not respond to a request for comment.