Torrent Power Acquires 156 MW Wind Projects from CESC for ₹7.9 Billion
The acquisition establishes Torrent's presence in Rajasthan and Madhya Pradesh
September 22, 2021
Torrent Power Limited has entered into a share purchase agreement with CESC Limited, Haldia Energy Limited, and other nominal shareholders to acquire 100% of the share capital of Surya Vidyut Limited, a wholly-owned subsidiary of CESC Limited.
Surya Vidyut owns and operates 156 MW of wind power plants in Gujarat, Rajasthan, and Madhya Pradesh. The company has had long-term Power Purchase Agreements (PPAs) with the state distribution companies (DISCOMs) for 25 years, with a weighted average PPA tariff of ₹ 4.68 (~$0.0637)/kWh.
The projected enterprise value for this acquisition is around ₹7.9 billion (~$107.5 million), subject to closing price adjustments.
Torrent Power, the integrated power utility of the diversified Torrent Group, has group revenues of ₹205 billion (~$2.79 billion) and a market capitalization of ₹750 billion (~$10.2 billion), with a presence across the entire power value chain of generation, transmission, and distribution.
The company has 3,879 MW of installed generation capacity, with 2,730 MW of gas-fired, 787 MW of renewable, and 362 MW of coal-fired plants. About 815 MW of renewable energy projects are in the pipeline, with letters of award and PPAs in place for 515 MW. Torrent Power’s overall generation capacity will increase to 4.9 GW, with a renewable portfolio of more than 1.8 GW, following the acquisition of the wind power projects.
CESC Limited is a vertically integrated power company that generates, transmits, and distributes electricity and is part of the RP-Sanjiv Goenka Group. Surya Vidyut Limited’s equity share capital is held by CESC Limited (53.79 %), Haldia Energy Limited (46.21 %), and other nominal shareholders.
This acquisition establishes Torrent’s renewable energy presence in Rajasthan and Madhya Pradesh.
Torrent Power had earlier purchased 100% of the share capital and all securities of Lightsource Renewable Energy Holdings’ special purpose vehicle, which operates a 50 MW solar project.
Torrent has also auctioned a 300 MW solar project discovering a tariff of ₹2.22 (~$0.03)/kWh. The auction also had a greenshoe option.
For more reports on M&A transactions and funding in solar, wind, energy storage, smart grid, and efficiency sectors, click here.