Greenko Energy Holdings, a renewable power producer based in the southern Indian city of Hyderabad, is raising $700 million in equity funding from existing investors.

The company has signed a definitive agreement with affiliates of Singapore’s GIC, the Abu Dhabi Investment Authority (ADIA), and Japan’s ORIX Corp to rake in the amount. Greenko founders Mahesh Kolli and Anil Kumar Chalamalasetty have also reportedly pumped in capital.

The transaction will peg the valuation of the company at $7 billion, making it the second-most valuable renewable power company in India, after Adani Green Energy, which has a valuation of $10.2 billion (Rs 84,750 crore).

Greenko Energy plans to use the funding for capital expenditure on pumped storage projects that have a capacity of over 25 gigawatt-hour GWh.

Established in 2006, Greenko has a net installed capacity of 7.5 GWh across 15 states in India, per information available on its website.

Going forward, the group is looking to transform renewable energy from real-time energy to a dispatchable and controlled medium through digitalisation and storage solutions to support the economy-wide shift towards a carbon-neutral electricity mix in India.

Currently, GIC holds a 52% stake in Greenko Energy, while Abu Dhabi Investment Authority and ORIX Corp hold 14% and 22% stakes, respectively. The remaining 12% stake is with the founders Kolli and Chalamalasetty.

The shareholding pattern will not change after the transaction.