ACME Seeks To Divest 35% Equity To Garner Rs 3,000 Crore

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ACME Cleantech is reportedly selling about 35% of its stake for an estimated ₹3,000 crore to fund its expansion into green hydrogen and ammonia production. The company, founded in 2003, has a portfolio of 5.5 GW across 12 states and is now venturing into green energy projects globally, with plans for a large green hydrogen facility in Odisha.

The fundraising effort, which will include a mix of debt and equity, aims to support the completion of current projects and facilitate expansion into green hydrogen and ammonia production.

Ambit, an investment bank, has been engaged to explore potential investment opportunities, with preliminary overtures made to prominent investors such as Mubadala, GIP (Blackrock), Actis, and NIIF, as per the sources who preferred to remain anonymous.

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Founded in 2003 by Manoj Kumar Upadhyay, ACME has established itself as the foremost solar independent power producer in the country, boasting a diverse portfolio of 5.5 GW spread across 12 states, catering to both central and state utilities. The company has witnessed significant growth in its operational solar power projects, expanding from 15 MW in 2011 to 2.9 GW, with an additional 2.6 GW currently under various stages of development.

In a comparable transaction, Avaada Group secured $1.07 billion (approximately ₹8,200 crore) from Canadian fund Brookfield last year, diluting a substantial stake to finance its ventures in green hydrogen and green ammonia in India.

ACME declined to comment on the matter when approached for a statement.

In recent developments, ACME announced its intention to venture into the production of green hydrogen and ammonia. ACME Green Hydrogen and Chemicals Company, a collaborative endeavour between ACME Group’s UK unit and Norway-based Scatec ASA, aims to emerge as a leading provider of green energy globally by 2030, with ambitions to produce 10 million tonnes per annum (MTPA) of green ammonia and hydrogen. The company has initiated projects in various countries, including Oman, India, Egypt, Australia, and Chile.

Furthermore, ACME revealed plans to invest approximately ₹27,000 crore to establish India’s largest single-location green hydrogen and derivatives manufacturing facility in Odisha, with a proposed green ammonia production capacity of nearly 1.3 MTPA at Gopalpur.

The group also secured a ₹4,000 crore loan from state-owned REC for its green hydrogen and ammonia project in Oman, which will support the commencement of the project’s first phase in the Special Economic Zone in Duqm, Oman, anticipated to produce 100,000 tonnes of green ammonia annually.

Aligned with the Indian government’s goal of producing 5 million metric tonnes of green hydrogen per annum by 2030, ACME has been actively diversifying its portfolio, including the sale of various operational and under-construction projects in recent years.

In December 2023, ACME divested solar power assets under its 14 special purpose vehicles to BluPine Energy, a subsidiary of London-based private equity firm Actis, for an enterprise value of ₹1,700 crore.

Previously, ACME had postponed its ₹2,200 crore public listing plans in 2018 due to stock market volatility.

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Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

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