Tata powers into renewables
Tata Power will buy Welspun Energy’s subsidiary, Welspun Renewable Energy Pvt Ltd (WREPL), at an enterprise value of Rs 9,249 crore.
Tata Power Renewable Energy Ltd (TPREL) will acquire WREPL through a singed share purchase agreement (SPA), said Tata Power of its subsidiary in a Bombay Stock Exchange filing on June 13, 2016.
WREPL has one of the largest operating solar portfolios in India spread across 10 states. These are about 1,140 megawatt (mw) of renewable power projects comprising about 990 mw solar power projects and about 150 mw of wind power projects. Nearly 1,000 mw of capacity is operational and the rest is under advanced stages of implementation.
TPREL operates 294 mw of renewable power capacity and 500 mw of renewable assets are being carved out of Tata Power into TPREL through a court process. In addition, almost 400 mw of solar and wind power projects are under implementation.
TPREL with the acquired assets would have renewable portfolio of about 2,300 mw, making it the largest renewable power company in India.
“The company is pursuing growth in renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities,” Tata Power CEO and Managing Director Anil Sardana had said in a statement yesterday.
This acquisition will enable the company to deliver significant value for all stakeholders as most of the assets are revenue generating and operating assets. Tata Power can further enhance value of these assets with its operational experience and financial optimisation, he had said.
The acquisition is also a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40 per cent of its total generating capacity, Sardana said. fii-news.com
