Torrent Power, based in Ahmedabad, has made a non-binding offer (NBO) for ReNew’s 350 MW and 750 MW of solar and wind power assets at an equity value of around USD 450 million, with valuation discussions still ongoing. Torrent Power has previously been involved in green energy transactions, and was in the running to acquire Vector Green Energy, an Indian clean energy platform owned by US private equity firm Global Infrastructure Partners (GIP), which was eventually acquired by Singapore’s Sembcorp Industries Ltd.
ReNew intends to sell this operating clean energy capacity as part of its capital recycling strategy and use the proceeds to develop new clean energy assets. Renewable energy sources account for 1.068 GW of Torrent Power’s total generation capacity of 4.16 GW. Torrent Group is also constructing a 715 MW renewable energy capacity. Torrent Power and Lightsource Renewable Energy previously agreed to purchase a 50 MW solar power plant in Maharashtra.
Torrent Power serves approximately 3.94 million additional customers in Dadra and Nagar Haveli, Daman and Diu, Ahmedabad, Gandhinagar, Surat, Dholera Special Investment Region, Dahej Special Economic Zone, Bhiwandi, Shil, Mumbra, Kalwa, and Agra.
To expand its business, Torrent Power is not opposed to taking an inorganic path. It had made the highest offer to purchase the business’ operations in Dadra and Nagar Haveli and Daman and Diu as part of the privatisation process for the electricity distribution companies in the union territories. In Torrent Power’s attempt to acquire the Chandigarh discom, Eminent Electricity Distribution Ltd, a division of the Kolkata-based RP-Sanjiv Goenka Group company, CESC Ltd, submitted the highest bid.
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