New Delhi, June 29 -- AM Green B.V., owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, has purchased Japanese financial services firm Orix Corp.'s 20% stake in Greenko Energy Holdings in a $1.4 billion equity deal, two people aware of the development said.

The transaction, one of the largest deals in India's green energy sector that values Greenko Energy at $7.5 billion, will be announced on Monday, the people cited above said on the condition of anonymity.

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. The deal is part of Orix's capital recyclin...