Orix announces plan to sell stake in Greenko to promoter; invest $750 mn in AM Green

Japan's financial services firm Orix Corp. said it will reenter a share transfer agreement to sell its 17.5% stake in Greenko Energy Holdings to AM Green Power B.V., in what will be among the largest transactions in India's green energy space.

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Orix said in a statement that the decisions taken also include reentering the agreement to invest in the convertible note issued by AM Green B.V, owned by founders of Greenko Group Anil Chalamalasetty and Mahesh Kolli. The deal is part of Orix's capital recycling strategy, with the transaction valuing Greenko Energy at $7.5 billion.

Mint reported about the $1.4 billion deal and that the deal will be announced. Under the terms of the deal, Orix gets $650 million in cash, plus $750 million worth of stock, amounting to 10% in AM Green through convertible notes. Chalamalasetty and Kolli will own the remaining 90% stake in AM Green. A private credit debt of $650 million was raised for the deal.

“If the sale price is estimated using the exchange rate as of June 27, 2025, ($1 = ¥144.58), Orix expects to record a gain on the sale of approximately ¥93.4 billion ($647.58 million) (including the valuation gain on the 2.5% stake which we will continue to hold) in the consolidated financial statements in the second quarter for the fiscal year ending March 31, 2026,” the statement said.

“AM Green B.V. has a call option on the remaining 2.5% stake that ORIX Corp. holds in Greenko Energy Holdings for 18 months. The plan is to acquire that portion as well, valued at around $150 million,” said a person aware of the development, requesting anonymity.

AM Green Group president and Greenko Group president and joint managing director Mahesh Kolli declined to comment on the remaining 2.5% stake sale.

Once the transaction is concluded, Chalamalasetty and Kolli will hold 28% stake in Hyderabad-based Greenko Energy, through their personal stakes as well as the stake held by AM Green, while sovereign wealth funds GIC Holdings Pte. Ltd, and Abu Dhabi Investment Authority (ADIA) will hold 58% and 14% respectively.

Greenko portfolio