InvestorQ : What is Hero Future Energies planning to do with the funds it gets from KKR?
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What is Hero Future Energies planning to do with the funds it gets from KKR?

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Juvina Maggie answered.
2 weeks ago
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KKR (Kohlberg Kravis Roberts) and the Hero Group will invest $450 million in Hero Future Energies (HFE) or Rs3,590 crore. HFE is the renewable energy arm of the Hero group and that business has been attracting a lot of attention from private equity funds. Now, it must be remembered that green energy is a capital intensive business and needs billions of dollars of long term commitment. These funds will support the efforts of Hero Future Energies (HFE) to expand its renewable capacity.

Both KKR and Hero group are investing into Hero Future Energies (HFE) to reduce their own carbon footprint. KKR has till date invested more than $15 billion in green energy companies and plans to infuse a lot more in the coming years. Hero Future Energies (HFE) will support companies in their efforts to decarbonise existing portfolios and transition to sustainable energy sources. Most of the large companies and groups in India are targeting to turn fully carbon neutral by around 2035 or 2040.

Hero Future Energies (HFE) was founded in 2012 as an independent power producer (IPP) with focus on renewable sources of energy. Hero Future Energies (HFE) has a diversified portfolio of 1.6 GW of operating solar as part of its portfolio. There is also a valuation perspective. Like NTPC and Tata Power, the Hero group has discovered that it is renewable energy franchise that drives value and will continue to do so in the future. For Hero Future Energies (HFE), it is also an opportunity to partner with KKR, quality global investor.

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