Canadian Firm AMP Solar Acquires Remaining 51% Stake in Rudra Solarfarms for $2 Million
AMP Solar had acquired 49% stake from Suzlon in December 2016
January 17, 2019
AMP Solar, a Canadian renewable developer, has acquired the remaining 51 percent stake in Rudra Solarfarms, a special purpose vehicle built by another renewable developer Suzlon to execute the 15 MW grid-connected solar photovoltaic project at Achampet in Telangana.
When contacted, a Suzlon executive confirmed the acquisition of the remaining stake by AMP Solar. According to a BSE filing, AMP Solar acquired remaining 51 percent stake for ₹142.1 million (~$2 million). As on March 31, 2018, the valuation of Rudra Solarfarms stood at ₹90.8 million (~$1.28 million).
In December 2016, AMP Solar had acquired a 49 percent stake in Rudra Solarfarms for a cash consideration of ₹140 million (~$1.97 million).
Suzlon had formed joint ventures with CLP India, Unisun Energy, Canadian Solar and Ostro Energy to develop and construct projects aggregating 195 MW in Telangana.
This is the fourth such transaction by Suzlon in the past few months. In November 2018, Canadian Solar acquired the remaining 51 percent stake in two solar power projects: Amun Solarfarms and Avighna Solarfarms, from Suzlon Energy for a total of ₹280.11 million (~$3.9 million). Initially, Canadian Solar had acquired a 49 percent stake in Amun and Avighna for a total sum of ₹260.42 million (~$3.6 million).
In the past, CLP India, one of the largest foreign investors in the Indian power sector, acquired 100 percent stake in Tornado Solarfarms for ₹324.9 million (~$4.61 million). In September 2018, Mercom had reported that CLP India and Suzlon entered into a partnership to develop 70 MW of grid-connected solar capacity.
Mercom previously reported that Suzlon reported a net loss of ₹2.8 billion (~$38.86 million) in the second quarter of FY19.
In June 2018, Mercom reported that Suzlon intends to re-enter the international market. “There was a time our exports were more than our domestic revenue. Then, we went through a financial crisis forcing us to slow down our international business and stabilise whatever assets we have. But now that we have regained our market position, we are planning to re-enter international market shortly. We hope to get some orders as early as next quarter,” JP Chalasani, had commented.
The company also commissioned 340 MW of solar projects across three states of Maharashtra, Telangana, and Rajasthan in March. Suzlon also bagged a repeat order of 96.6 MW from renewable energy project developer ReNew Power for the development of a wind project in the state of Karnataka.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.