Adani Green Energy Ltd (AGEL) on Monday said it has completed the acquisition of SB Energy Holdings Ltd (SB Energy India) for an enterprise valuation of $3.5 billion or Rs 26,000 crore.
This marks the largest acquisition in India’s renewable sector. Following the closure of the deal, SB Energy India is now a 100 per cent subsidiary of AGEL. Earlier, it was a 80:20 joint venture between Japan-based SoftBank Group Corp and the Bharti group.
In May, both parties had entered into definitive agreements for the transaction. The announcement comes just days after Gautam Adani had said that the group would invest over $20 billion across the next 10 years in renewable energy generation.
SB Energy India has 5GW renewable assets across four states through its special purpose vehicles (SPVs). The portfolio holds 1,700MW of operational renewable assets, 2,554MW of assets under construction and 700MW of assets near construction.
Of these, the solar capacity accounts for 84 per cent of the portfolio (4,180MW), the share of wind-solar hybrid capacity is around 9 per cent (450MW) while wind capacity accounts for 7 per cent (324MW).
A statement from the Adani group added that it will get one of India’s highest quality renewable portfolios, with many of the assets being solar park-based projects and constructed using best-in-class project development, construction & operations and maintenance standards.
“This transaction takes us closer to becoming the global leader in renewables,” Vneet S. Jaain, MD & CEO, AGEL.
He said the addition of the high-quality large utility assets from SB Energy India demonstrates Adani Green Energy’s plans to accelerate India’s efforts to transition towards a carbon neutral future and that its renewable energy foundations will enable an entire ecosystem of new industries that can be expected to catalyse job creation in multiple sectors.
Shares of Adani Energy on Monday ended with gains on the announcement. On the BSE, the scrip settled at Rs 1176.20 — up 2.18 per cent over the last close. It currently has a market cap of Rs 1,83,959.36 crore.
AGEL said the transaction will boost its overall portfolio to 19.8GW implying a growth of four times.
“AGEL’s counterparty mix for its overall portfolio of 19.8 GW is further reinforced with 87 per cent sovereign rated counter parties. The company also ensures a thorough adherence to globally recognised principles such as UN sustainable development goals and science-based targets initiative’’, it added.
Key customers of AGEL include Solar Energy Corporation of India, National Thermal Power Corporation and various state discoms.
