Tata Power to acquire ADB, DEG-backed Welspun Renewables

Tata Power will pay INR92 billion ($1.4 billion) for a 100% stake in WREPL, according to a filing. The company says it is the largest transaction recorded in India's renewable energy sector. The deal will provide a full exit for both ADB and DEG, which invested in WREPL in 2014, paying INR3.1 billion and INR2.2 billion for stakes of 12% and 9%, respectively.

WREPL will become part of Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power. Currently TPREL operates 294 megawatts of renewable power capacity, with another 400 MW of solar and wind projects under construction. A further 500 MW in assets will be carved out of Tata Power into TPREL. The deal will see all of WREPL'S 1,140 MW in assets transferred to TPREL, giving it a total portfolio of about 2.3 gigawatts, more than any other Indian renewable energy company.

"This acquisition will enable the company to deliver significant value for all stakeholders as most of the assets are revenue generating and operating assets," said Tata Power CEO and Managing Director Anil Sardana. "The acquisition is also a significant step toward attaining the company's objective of having non-fossil fuel based capacity up to 30-40% of its total generating capacity."

India's renewable energy space has seen a number of substantial private equity investments in the past year, including a $265 million funding round for ReNew Power Ventures led by a subsidiary of the Abu Dhabi Investment Authority and a $132 million commitment to Essel Green Energy by APG Asset Management and Piramal Enterprises. In addition, the Abraaj Group and conglomerate Aditya Birla last year announced a joint platform for developing solar power plants in India.

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• Topics
• South Asia
• Infrastructure
• Cleantech
• Trade sale
• India
• energy
• Asian Development Bank
• German Investment and Development (DEG)
• Exit