en.Wedoany.com Reported - On August 10, Purvah Green Power, the renewable energy platform of Indian power utility CESC, signed a share purchase agreement with ReNew Solar Power to acquire all equity stakes in six project companies held by the latter. The transaction involves approximately 1.4 gigawatts peak of operational solar assets, with a base enterprise value of INR 48.59 billion, equivalent to approximately $510 million.

The six project companies have a combined installed capacity of 1,411.48 megawatts peak, of which ReNew Hans Urja holds 810 megawatts, ReNew Solar Photovoltaic holds 506.25 megawatts, with the remaining capacity distributed across the other four companies. All of these assets are already operational, with over 90% of the capacity supplying power to Solar Energy Corporation of India under long-term power purchase agreements, and the remaining capacity off-taken by Indian power distribution companies, with all related PPAs having a term of 25 years.

Under the transaction arrangements, Purvah Green Power will pay approximately INR 15.82 billion in cash at closing, with funds provided by parent company CESC, primarily for the equity acquisition and settlement of existing sponsor debt of the project companies. The enterprise value of INR 48.59 billion does not include contingent payments of approximately INR 2.3 billion, which will only be paid upon the recovery of additional proceeds from related legal change claims, with the final amount subject to adjustments for debt, cash, and other items.

Upon completion of the transaction, Purvah Green Power's operational renewable energy capacity will increase to over 1.8 gigawatts peak, with under-construction and contracted capacity of approximately 3 gigawatts peak, bringing the overall project portfolio to approximately 4.8 gigawatts peak. Additionally, the company has 2.2 gigawatt-hours of battery energy storage projects in the implementation stage.

The acquisition does not require approval from government or regulatory authorities and is expected to be completed by October 31, 2026. Upon completion of the transaction, the six project companies will become indirect wholly-owned subsidiaries of CESC.