EAAA Alternatives Plans Major Investments in Clean Energy and Commercial Real Estate

“No, there is no big difference in our ticket size. We compete with all the global players. An analogy to that is our Indian cricket team, their performance on home ground, when they play a match in India, their win ratio is much higher than when they play outside India. And this typically happens with every team. One of the added advantages is our first hand market knowledge across India. So, there will always be global players coming to India. And when we started the business in 2018, there were a lot of companies, even the names you mentioned. But despite that, we have scaled up the business, purchased assets and generated returns. So, this competition will always be there. Healthy competition benefits investors, assets, and the socio-economic environment, while strengthening the overall AIF market.”

“There are three valuations. Equity market has gone very high on the valuation. The companies which used to trade at 9.5–10 times EBITDA, are now trading at 13 to 15 times EBITDA multiple. So, the valuations on the listed equity market has gone up. So, whether you look at IndiGrid Infrastructure Trust, and our energy InvIT called Anzen, valuations have gone up. If you look at the private market, valuations have gone up here too. The Greenfield market where assets are made, IRRs have gone up. So, in India, the tariff of solar had gone down to 2 rupees plus. Now the new bid is around 2.50 rupees. So, the tariff of renewables has gone up recently. So, IRR on Greenfield has gone up and market valuations on both on InvITs as well as on equity have also gone up.”