Global private equity majors and strategic infrastructure investors including Macquarie, Actis, Blackstone and Sembcorp are preparing to bid for a controlling stake in Welspun Group’s clean-energy arm, Welspun New Energy, at a valuation higher than was estimated just three months ago, people familiar with the development said.
“The company is seeking around $250 million in value. With a lot of consolidation that has happened in the sector recently, the valuation expectations have inched up,” one of the persons cited above said on the condition of anonymity.
Binding bids are expected soon, a second person said. “Large PE firms and some strategics are likely to bid.”
Mint reported on 18 November of the company’s plans to sell a controlling stake at a then lower valuation of $100 million. The company has appointed EY to help it look for buyers, Mint had reported.
The proposed sale of a controlling stake in Welspun New Energy comes in the backdrop of a major cleanup of India’s green energy contracts.
As reported by Mint in November 2025, the Union power ministry had directed state-run procurers—Seci, NTPC, NHPC, and SJVN—to cancel contracts by the end of the same month, where it was not feasible to sign power purchase agreements (PPAs) and power supply agreements (PSAs).
However, the target runway is still long—estimates from International Energy Agency (IEA) show that India will need to invest $1.3 trillion in non-fossil power generation capacity by 2035 to meet its energy transition goal, and stay on track to meet net zero by 2070. This in turn has attracted both domestic and global investors into the industry.
Emailed queries to Actis, Blackstone, CVC, EY, Macquarie, Sembcorp and the Welspun Group did not elicit any response till press time.
Platform and assets
The proposed sale would mark a new phase in the Mumbai-based group’s renewable strategy nearly a decade after it exited its earlier clean-energy business.
In 2016, entrepreneur B.K. Goenka’s Welspun Group sold Welspun Energy’s entire 1.1-GW portfolio to Tata Power for about $1.4 billion, then one of the largest renewable deals in India.
In 2022, Welspun New Energy was formed as a green energy infrastructure developer. According to its website, the company wants to establish 5GW of renewable energy and 2 MTPA of green derivatives (ammonia/methanol) capacity by 2030.
A May 2025 report from Crisil said the company, through its subsidiaries, is in the process of setting up ~0.8-1GW independent renewable (solar, wind or hybrid) power plants over the next 2-3 fiscal years. Its current operational portfolio “is limited at 12.7-megawatt (MW) – a rooftop solar plant (8.1MW) and ground mount solar plant (4.6 MW) for the Welspun group companies”.
The Crisil report further added that the company has made progress by winning bids for an additional 350MW (with an option to expand to 475MW) of capacity, building on its existing project pipeline. It is also exploring avenues of green hydrogen (GH)/ammonia and pump hydro projects (in the initial stage).
Sector consolidation
The proposed transaction comes amid heightened deal activity in India’s renewable sector, driven by rapid capacity expansion and the government’s clean-energy targets. Renewable energy capacity additions touched a peak of 44.5GW in 2025 (till November), nearly doubling annual additions, according to the ministry of new and renewable energy.
Large global investors such as Macquarie or Blackstone are increasingly targeting operating platforms that offer stable cash flows and visibility on future growth, said the head of a domestic investment bank, requesting anonymity. “India fits that profile exceptionally well, given its ambitious renewable capacity targets, improving grid integration, and rising corporate demand for green power.”
Such investments could also bring two structural benefits. “First, access to lower-cost, long-duration capital, which can improve project viability and accelerate capacity addition. Second, stronger governance and global best practices in asset management and risk mitigation,” this person said.
Although private equity buy-ins were rare in 2025, several large transactions underscored consolidation trends. The ONGC–NTPC Green acquisition of Ayana Renewable Power for $2.3 billion ranked among the country’s biggest clean-energy deals, while JSW Neo Energy’s purchase of the O2 Power platform highlighted conglomerates’ push for inorganic growth.
Further, the first half of 2025 saw several billion-dollar platform acquisitions against the backdrop of PE exits and restructurings in conglomerates like Vedanta.
Capital flows into clean power
Foreign direct investment (FDI) into India’s electricity sector has also been rising. According to the IEA’s World Energy Investment 2025 report, about 83% of power sector investment in the country went to clean energy in 2024.
India was the world’s largest recipient of development finance institution funding in 2024, receiving around $2.4 billion in project-type interventions in clean energy generation, according to the IEA report.
It noted further that FDI in India’s electricity sector has doubled since pre-pandemic levels to reach $5 billion, and there is scope to accelerate further.
