New Delhi [India], August 10 (ANI): CESC subsidiary Purvah Green Power Private Limited will acquire about 1.4 gigawatt peak (GWp) of operational renewable power capacity from ReNew Solar Power Private Limited at an enterprise value of Rs 4,859 crore, according to a stock exchange filing on Monday.
Purvah Green Power has entered into a share purchase agreement to acquire 100 per cent ownership of six ReNew subsidiaries holding a combined installed capacity of 1,411.48 megawatts peak (MWp).
The acquisition will increase Purvah’s operational renewable energy capacity to more than 1.8 GWp. Its overall portfolio will rise to 4.8 GWp, comprising more than 1.8 GWp of operational capacity and around 3 GWp of contracted or tied-up projects at various stages of construction.
More than 90 per cent of the acquired capacity is contracted with the Solar Energy Corporation of India under long-term power purchase agreements, while the remaining capacity is tied up with Karnataka power distribution companies. All the power purchase agreements have a tenure of 25 years.
“The acquisition marks a significant acceleration of our renewable energy journey. It gives us immediate operating scale, complements our strong pipeline of contracted capacity, and meaningfully brings forward the growth of the platform,” RPSG Vice Chairman Shashwat Goenka said.
He added that the transaction marked the group’s move from a conventional power player to a diversified energy platform.
The Rs 4,859-crore enterprise value excludes an estimated contingent payment of Rs 230 crore, which will become payable only upon additional realisation from a change-in-law claim. The final consideration will also be subject to adjustments for debt, cash and other items under the share purchase agreement.
The company said no governmental or regulatory approval was required for the acquisition. It expects to complete the transaction before October 31, 2026, following which the six companies will become step-down subsidiaries of CESC.
Purvah Green Power, incorporated in December 2023, is CESC’s renewable energy platform and is working towards building a 10 GW renewable energy portfolio over the next few years. (ANI)
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