Torrent Power, on Tuesday, announced acquisition of 100 per cent share capital of Surya Vidyut, a wholly-owned subsidiary of RP-Sanjiv Goenka Group’s CESC with an estimated enterprise value of ₹790 crore.
Torrent Power has entered into a share purchase agreement (SPA) with CESC, Haldia Energy and other nominal shareholders for the stake buy.
Surya Vidyut operates 156 MW wind power plants, spread across Gujarat, Rajasthan and Madhya Pradesh.
Prior to the transaction, CESC (53.79 per cent), Haldia Energy (46.21 per cent) along with other nominal shareholders collectively held 100 per cent equity share capital of Surya Vidyut.
This acquisition marks Torrent Power’s foray into renewable energy space in the States of Rajasthan and Madhya Pradesh. It is in line with the company’s strategy to grow and strengthen its position in the renewable energy sector, the firm said.
Long term PPAs
The projects have long-term power purchase agreements (PPAs) with the respective State discoms for a period of 25 years, with weighted average PPA tariff of ₹4.68/kWh, an official statement said here.
The enterprise value estimated for this acquisition is about ₹790 crore, subject to closing price adjustments. The acquisition is further subject to customary conditions for transaction closure, it added.
With the acquisition of 156 MW wind power plants, Torrent Power’s total generation capacity, including under development portfolio, will reach to around 4.9 GigaWatt (GW) with renewable portfolio of more than around 1.8 GW.
Torrent Power, currently, has an aggregate installed generation capacity of about 3,879 MW comprising about 2,730 MW gas‐based capacity, approximately 787 MW renewable capacity and about 362 MW coal‐based capacity. Further, renewable power projects of close to 815 MW are under development, of which LOAs have been received and PPA has been executed for projects of 515 MW.
Torrent Power shares gained over 1.3 per cent to close at ₹491 on the NSE on Tuesday.