Hong Kong’s Gaw Capital Partners is in talks with Atria Power Corp. Pvt. Ltd to acquire a majority stake in the Bengaluru-based firm for an estimated equity value of $250 million, two people familiar with the development said.
Gaw Capital has submitted a non-binding offer, the people said, requesting anonymity, adding that Avendus Capital is managing the sale.
The funds will be used by Atria to repay mezzanine financing, which combines debt and equity financing elements. Atria Power has a 600-megawatt (MW) portfolio, with roughly 250 MW dedicated to the commercial and industrial (C&I) sector.
Gaw Capital, a private equity firm with $35.7 billion in assets under management, had previously explored investment opportunities in India, including considering purchasing a majority stake in rooftop solar power producer CleanMax Enviro Energy Solutions Pvt. Ltd, Mint reported.
“The talks between Gaw Capital and Atria Power Corp. are at an advanced stage,” said one of the two people cited above, requesting anonymity.
An Avendus Capital spokesperson declined to comment on the development, citing company policy.
Queries emailed to the spokespeople for Gaw Capital Partners and Atria Power on Saturday morning remained unanswered.
India’s C&I segment has attracted strong investor interest, driven by the nation’s projected green energy trajectory, as well as rules allowing large power users to source energy from the open market rather than the more costly grid. C&I projects are also shielded from risks such as power procurement curtailment by state-run power distribution firms.
India has an installed power generation capacity of 416GW, of which renewable energy capacity accounts for 125GW. India’s hydropower capacity is 46.85GW. Of the country’s green energy capacity, solar and wind power account for 66.78GW and 42.63GW, respectively.
While around 82.62GW of green energy capacity is under implementation, an additional 40.9GW is under various tendering stages.
The other C&I deals in the works, as reported by Mint, include Japan’s Mitsui & Co. Ltd. and Osaka Gas Co. Ltd submitting bids to buy a 30% equity stake in ReNew Energy Global Plc’ 2.3GW C&I project portfolio in an equity deal valued at around $300 million. Also, I Squared Capital and Hinduja Renewables Energy Pvt. Ltd are the remaining contenders vying to acquire TPG Capital’s 52% stake in Hyderabad-based Fourth Partner Energy Pvt. Ltd at an equity value of about $350 million. In addition, Aditya Birla Group has hired Standard Chartered to help sell up to 49% stake in the group’s renewable energy business to raise around $400 million. Actis Llp acquired Kolkata-based Atha Group’s 400MW solar power assets for an equity value of around $100 million for its green energy platform, Blupine Energy Pvt. Ltd.
India’s electricity demand is growing at about 10% annually to support the domestic economy. In addition, the nation’s energy transition plan will have a significant impact on global energy markets. To achieve net-zero carbon emissions by 2070, India has set a target of 500GW of installed renewable energy capacity by 2030. The ministry of new and renewable energy unveiled a plan to add 250GW of renewable energy capacity over the next five years. As part of this roadmap, the government will issue tenders for 50GW of renewable energy capacity annually during FY24-FY28.