Tata Power, India’s largest integrated power company, has agreed to acquire Welspun Energy’s 1.1GW renewable portfolio for an enterprise value of INR92.49 billion ($1.37 billion; €1.22 billion).
Mumbai-based Welspun has one of the largest operating solar portfolios in India. Spanning 10 states, the unit comprises about 990MW of solar and 150MW of wind projects. Nearly 1GW of capacity is operational, with the remaining projects under advanced stages of implementation, Tata said in a statement. The transaction represents the largest ever renewable deal in India.
Tata Power’s renewables unit currently operates 294MW of power capacity, with a further 500MW to be carved out from Tata Group, its parent company. Tata Power will have a renewable project portfolio of about 2.3GW once the Welspun transaction completes, making it India's largest renewable power company.
This will bring Tata Power's installed gross generation capacity to 10.3GW.
“The company is pursuing growth in the renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities,” said Anil Sardana, chief executive and managing director of Tata Power.
“The acquisition is also a significant step towards attaining the company's objective of having non-fossil-fuel-based capacity of up to 30-40 percent of its total generating capacity.”
The company trumped rival offers from India’s IDFC Alternatives and Finnish clean energy company Fortum, as well as Greenko Group, an Indian renewable company backed by sovereign funds from Singapore and Abu Dhabi, according to reports.