Investment Firm KKR to Acquire 317 MW of Solar Assets from Shapoorji Pallonji

The transaction amount is ₹15.54 billion


Shapoorji Pallonji Infrastructure Capital (SP Infra), a part of the Shapoorji Pallonji Group and KKR, a global investment firm, have signed an agreement under which the SP Infra will sell five of its operational solar energy assets to KKR for ₹15.54 billion (~$204 million).

The portfolio comprises 169 MW of solar assets in Maharashtra and 148 MW in Tamil Nadu, totaling 317 MW capacity.

According to the company’s statement, “India is a key part of KKR’s Asia Infrastructure strategy, and this announced transaction is the firm’s second investment in the country as part of its dedicated Infrastructure strategy.”

David Luboff, head of Asia Pacific Infrastructure at KKR, said, “We are truly pleased to extend our infrastructure franchise in Asia and India through this investment in a world-class portfolio of fully operational solar energy projects. Given the growing demand across the Asia Pacific for sustainable energy solutions, we also see this as a great example of how KKR can bring capital and expertise to assets to help meet the demand for infrastructure development. Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas.”

According to the press statement, India is a vital part of KKR’s Asia Infrastructure strategy, and this announced transaction is its second investment in the country. KKR has made its investment through its infrastructure fund, the statement added.

Edelweiss Financial Services acted as the exclusive financial advisor to SP Infra while Khaitan & Co. and PwC acted as its legal and tax advisors.

Sanjay Nayar, CEO of KKR India, added, “Given the government’s ambitious target of achieving 175 GW of renewable energy capacity by 2022, we believe this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India.”

In April 2019, Actis acquired 194 MW of operating solar power assets from Shapoorji Pallonji Infrastructure Capital through Sprng Energy, its renewable energy platform in India. Out of the 194 MW, 144 MW capacity is located in Telangana and a 50 MW project in Rajasthan.

According to Mercom’s India Solar Project Tracker, Shapoorji Pallonji has 700 MW of solar portfolio. Of this, nearly 300 MW is in operation, and 400 MW capacity is currently under development.


Image credit: Renew Power