KKR, Actis, Edelweiss Infrastructure and Ayana Renewable Power are in early talks to acquire about 400 megawatt solar energy projects in Rajasthan and Assam from Azure Power Global, multiple people aware of the development said.
They pegged the deal size at ₹1,600-1,700 crore, or about $225 million.
Avendus Capital is advising Azure Power for the asset sale.
“To streamline our asset base, we have reached out to some investment bankers for options,” a spokesperson of Azure Power said. “We are still exploring our options and no decision has been taken as yet.”
Spokespersons of global private equity players KKR and Actis, and domestic firms Ayana and Edelweiss declined to comment.
Set up in 2008 by Inderpreet Wadhwa, Azure Power has a portfolio of more than 7.1 gigawatt solar power projects under various stages in the country, including more than 200 MW rooftop portfolio across 24 states. It has 1.8 GW operational projects, 1.3 GW under construction, 2 GW in development, and 2 GW in the pipeline.
Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is the largest shareholder in the New York Stock Exchange-listed Azure Power with 50.9% stake.
“Since the new management has come on board, Azure has done a review of its entire asset base to identify assets that might not be a strategic fit to the company in the long run,” the company spokesperson said.
Other investors in the firm include International Finance Corporation (IFC), Helion Venture Partners, German development finance institution DEG and France’s Proparco.
Investors such as KKR, Actis and Edelweiss Infra-owned Sekura Energy are on a buyout spree in Indian clean energy space.
India’s renewable capacity installations reached 86 GW as of December 31, 2019, with wind energy share at 44% of the total renewable energy mix, followed by solar with 39% share, according to research firm JMK Research and Analytics.
The government has a target to add 175 GW of renewable energy into the country’s grid by increasing solar power generation to 100 GW and wind to 60 GW by 2022.
Source: Economic Times