Sri Lanka’s WindForce sees increase in Sweden based Tundra fund’s stake in company - Opportunity Sri Lanka
Sri Lanka’s WindForce sees increase in Sweden based Tundra fund’s stake in company

Sri Lanka’s WindForce sees increase in Sweden based Tundra fund’s stake in company

Sri Lanka’s WindForce Ltd., which is the largest renewable energy company in the country and one of latest Colombo Stock Exchange (CSE) debutants, has reportedly stated that it has witnessed a further vote of confidence by a foreign fund – Tundra – as it had doubled its stake to an estimated over 5% with an investment of over Rs. 600 million.
The Colombo stock market has reportedly seen 106.5 million shares of WindForce trade for Rs. 1.94 billion, accounting for nearly 50% of the day’s turnover. The stock went through 641 trades before closing at Rs. 18.80, down by 20 cents. Of the shares traded, 71.3 million were executed via six crossings.
According to Daily FT, Sweden-based global asset management company Tundra Fonder’s Tundra Sustainable Frontier Fund, has picked up 2.5% stake in WindForce.
NDB Securities has reportedly stated that foreign holding of WindForce increased by 33.8 million shares whilst Asia Securities have put net buying into WindForce at Rs. 636.8 million recently.
Two major shareholders and Co-Founders – Akbar Brothers and Hirdaramani Group – had been on the buying side as well last week.
Tundra Sustainable Frontier Fund had entered WindForce via the latter’s highly successful and landmark Initial Public Offering at Rs. 16 per share in March.
Soon after the original investment, Tundra Fonder Founder and Chief Investment Officer Mattias Martinsson has been quoted as saying WindForce was a “pretty amazing company” emphasising the firm’s diversified sustainable energy portfolio.
“At our meetings, we were impressed by both the strong ownership base with a number of Sri Lanka’s most reputable companies on the list of owners, and we were very impressed by the company management that has taken the company to its current position over the past ten years,” the Fund had stated in its March monthly report.
Further, the Fund had also found the listing price-to-earnings ratio of WindForce to be very attractive given the nature of the business and future growth prospects, the Daily FT news report has further noted.

OSL take:

Sri Lanka’s renewable energy generation sector has become a hotspot for business/investment opportunities. Given the country’s looming power crisis due to the ever growing demand, the government of Sri Lanka is focused on meeting the demand through sustainable energy generation options. With funding received from Sri Lanka’s development partners, especially India through its recent line of credit, the renewable energy generation sector in the country has become an attractive business/investment opportunity. Given that Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country, opportunities in Sri Lanka’s renewable energy generation sector will see further growth in the future.

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Article Code : VBS/AT/20210623/Z_3

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