IndiGrid has announced its plan to acquire the solar project ReNew Solar Aayan, located in Rajasthan, and Koppal Narendra Transmission in Karnataka.
The two transactions have a total value of approximately Rs21.08bn ($250m), as reported by the Economic Times.
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This excludes net working capital and cash adjustments.
ReNew Solar Aayan Private Limited (RSAPL) is a 300MW alternating current solar project in Rajasthan’s Barmer, an area with high solar radiation.
Since March 2024, the operational project has had a secure revenue stream through a 25-year long-term power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) at Rs2.37 per unit
As a wholly-owned subsidiary of ReNew Solar Power Private Limited, RSAPL benefits from its proximity to RSUPL, an asset bought by IndiGrid in 2024.
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By GlobalDataThis acquisition is expected to enhance operational synergies and bolster IndiGrid’s position in the renewable energy sector.
Koppal Narendra Transmission is a build-own-operate-maintain interstate transmission system (ISTS) venture that has been operational since October 2023 in Karnataka.
It features 276 circuit kilometres of transmission lines and has a transformation capacity of 2,500 mega volt-amperes.
The ownership of this asset is split between ReNew Solar Power with a 51% stake and KNI India with the remaining 49%. KNI India is a joint venture formed by Norfund and KLP.
IndiGrid will secure complete ownership and managerial authority over both entities.
IndiGrid managing director Harsh Shah stated: “These acquisitions align with our long-term strategy to participate meaningfully in this transformation by owning and operating essential infrastructure that supports grid stability and energy access”.
The funding mix for this acquisition will include equity, internal accruals and debt financing. Post-acquisition, IndiGrid stated that its net debt-to-asset under management (AUM) ratio will be maintained at 62%, allowing room for further growth initiatives.
