Azure Power Global is in talks with Canadian asset manager Brookfield to raise as much as Rs 500 crore by selling a significant minority stake to fund the Delhi based clean energy firm’s plans to expand its generation capacity, two people with direct knowledge of the development said.

The fund raise would be a prelude to its proposed New York or Indian public offer, which it had announced late last year.

Brookfield and Barclays declined to comment, while a mail sent to Azure remained unanswered till the time of going to the press. The transaction is coming at a time of a large-scale consolidation in the Indian renewable energy space with Tata Power agreeing to buy the renewable energy business of Welspun Group for around Rs 9,250 crore in June.

American renewable energy maker SunEdison has mandated Rothschild to run a formal process to sell its 1,318 megawatt clean energy portfolio in India. Founded in 2008 by Inderpreet Wadhwa, a software professional from Sillicon Valley, Azure installed India’s first utility-scale solar project in 2009. The company currently has a portfolio of about 900 MW across 15 Indian states, its website shows.

The company, which counts International Finance Corporation, the investment arm of the World Bank, Foundation Capital, Helion Ventures, and German development bank DEG as its investors, filed for an American listing in December 2015.

Brookfield, which manages $250 billion globally, plans to invest over $2 billion in India over the next 2-3 years to buyout upscale offices and commercial towers, stranded roads, power and utilities infrastructure as it aims to double its existing asset base in the country.

Brookfield has three power investments in India and is in talks to invest more in the core infrastructure sectors in the country.