India-based energy company Adani Green Energy (AGEL) has signed share purchase agreements to acquire a complete stake in SB Energy India.

The stake will be acquired from the Japanese SoftBank Group (SBG) and the India-based Bharti Group for Rs260bn ($3.5bn).

SBG currently owns an 80% stake in SB Energy India, with the remaining 20% owned by Bharti Group.

This deal, said to be the largest in India’s renewable sector, will add 4,954MW of capacity to AGEL’s renewable energy portfolio.

Adani Group chairman Gautam Adani said: “This acquisition is another step towards the vision we stated last January, in which we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030.

“India has, without any doubt, been one of the few nations that have accelerated its global commitment towards climate change, and we intend to do our part to deliver on the promises made.

“The renewable energy platform that we are building will lay the foundation for attracting several other global industries that are increasingly looking to reduce their carbon footprint, as well as laying the foundation for opening up adjacent platforms that include Hydrogen and Storage.”

SB Energy India’s renewable portfolio is spread across four states in India.

The portfolio covered by the deal includes 4,180MW of solar capacity (84%), 450MW of wind-solar hybrid capacity (9%) and 324MW of wind capacity (7%).

3,554MW of the portfolio’s capacity is currently under construction, while 1,400MW of the solar capacity is operational.

All the projects included in the deal have 25-year power purchase agreements in place with sovereign-rated counterparties, including Solar Energy Corporation of India (SECI), NTPC and NHPC.

SBG representative director, corporate officer, chairman and CEO Masayoshi Son said: “We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy. We are immensely proud of all that we have accomplished.

“As SBG continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”

The acquisition will give AGEL 24.3GW of total renewable capacity and an operating renewable capacity of 4.9GW.

It will also allow the company to achieve its 25GW target renewable portfolio four years ahead of the set timeline.

The deal’s completion is subject to customary approvals and conditions.