For an enterprise value of Rs 15.5 billion, IndiGrid and ReNew Solar Power Private Limited (RSPPL) have inked a share purchase agreement for the acquisition of ReNew Solar Urja Private Limited (RSUPL). The overall valuation, encompassing net working capital and cash, is approximately Rs 16.5 billion. Furthermore, there will be an additional earn-out linked to changes in law, specifically in basic customs duty and GST, payable to RSPPL upon realisation of the initial payment.
Following the conditions outlined in the definitive agreements and the power purchase agreement (PPA), as well as the associated lock-in restrictions, IndiGrid is set to secure full shareholding and managerial authority over RSUPL, subject to necessary regulatory approvals.
Functioning since December 2021, RSUPL is a solar generation facility with a capacity of 300 MW (AC), situated in Jaisalmer, Rajasthan. It holds a 25-year PPA with the Solar Energy Corporation of India, stipulating the sale of generated power at a tariff of Rs 2.71 per kWh. The project has been in operation and generating revenue for approximately two years, with around 23 years remaining in the term of the PPA.
The inclusion of RSUPL in IndiGrid’s portfolio is set to mark the company’s largest capacity project situated at a single site. With this purchase, IndiGrid’s operational solar assets’ peak capacity will exceed 1 GW, and the total assets under management will reach approximately Rs 285 billion.
