In what can be termed as the biggest acquisition in the renewable energy sector in the country, Tata Power has informed the Bombay Stock Exchange (BSE) that its wholly owned subsidiary Tata Power Renewable Energy Ltd (TPREL) will acquire Welspun Energy’s subsidiary, Welspun Renewable Energy Pvt Ltd (WREPL).
The transaction is subject to various statutory and other regulatory approvals. The enterprise value of the transaction excluding closing adjustments is Rs 9,249 crore.
JM Financial Institutional Securities Limited has acted as acted as the exclusive transaction advisor to TPREL. KPMG India Private Limited was the accounting and tax advisor. AZB and Partners acted as the legal advisor for this transaction.
WREPL has one of the largest operating solar portfolios in India spread across ten states. According to the press release the company has about 1,140 mega watt (MW) of renewable power projects comprising about 990 MW solar power projects and about 150 MW of wind power projects. Out of 1,140 MW renewable portfolio, nearly 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation.
After the acquisition TPREL would have renewable assets portfolio of about 2,300 MW making it the largest renewable power company in India.
By Atanu Kumar Das