Impact Fund Denmark set to buy up to 20% stake in Greencell Mobility for ₹500 crore

New Delhi: Impact Fund Denmark is set to acquire a 15-20% stake in electric bus operator Greencell Mobility for around ₹500 crore, as investors increasingly look to back companies that are electrifying urban public transport, people aware of the development said.

The potential deal could value Greencell, which is backed by Eversource Capital and National Investment and Infrastructure Fund, at ₹3,000 crore, they said.

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"Impact Fund Denmark's investment in Greencell is in advanced stages and a few minor formalities remain," said a person in the know.

Impact Fund Denmark and Greencell Mobility did not comment on the development.

Greencell has contracts to operate 3,300 electric-powered buses in 30 Indian cities. The contracts are multi-year concessions from state transport authorities that have the backing of central government subsidy schemes.

The company has also co-invested in e-bus operator PMI Electro Mobility, which received $310 million from private equity firm KKR in March. Greencell's investment is in a special purpose vehicle floated by PMI Electro Mobility to operate electric-powered buses in Uttar Pradesh. In January, Greencell announced that it received ₹800 crore in funding from IFC Washington, Tata Capital and British International Investment.

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Eversource Capital's Green Growth Equity Fund, which has NIIF among its sponsors, invested ₹1,080 crore in Greencell since the company was founded in 2019.

The government is promoting EVs as a cleaner and sustainable form of transportation. Through schemes such as the PM-eBus Sewa and the PM E-DRIVE, it has subsidised contracts for operating electric-powered buses in several cities.

The two schemes collectively incentivise the operation of 24,000 electric buses.