New Delhi, Jan. 9 -- Alternative investment firm Stonepeak is seeking up to 15% stake in the holding company of green energy firm AM Green in a deal potentially worth around $1.4 billion in equity value, two people aware of the development said. The US-based investor is currently doing due diligence for the transaction, which is likely to become one of India's largest green energy deals.

The proposed stake sale in AM Green (Luxembourg) S.a r.l. is likely to conclude within a month, the people cited above said on the condition of anonymity. AM Green, owned by the Greenko Group founders Anil Chalamalasetty and Mahesh Kolli, will use some of the money to repay its private credit of $650 million. That amount was borrowed to buy 17.5% in Gree...