Grasim Industries’ subsidiary Aditya Birla Renewables (ABRen) has signed an agreement to acquire the Sprng Energy group of companies from Shell Overseas Investment for $1.8bn (Rs173.22bn), including debt.

The transaction covers the full ownership of Solenergi Power Private and thereby Sprng Energy.

The proposed deal will add approximately 5GW-peak (GWp) of capacity to ABRen’s portfolio, consisting of around 3.3GWp of operational assets and 1.7GWp under construction.

Sprng Energy currently provides solar and wind power to electricity distribution companies in India and manages a combination of operational and contracted assets, along with additional capacity under development.

The acquisition will be financed through a combination of debt and equity contributions from Grasim and funds managed by Global Infrastructure Partners, part of Blackrock.

Subject to regulatory approvals and standard closing conditions, the companies expect the transaction to be completed by the end of 2026.

The expanded renewables portfolio will total around 9.3GWp, positioning ABRen as one of the larger sector participants in India.

Aditya Birla Group and ABRen director Aryaman Vikram Birla said: “This acquisition is a pivotal moment in ABRen’s evolution, rapidly accelerating our ambition to build a top-tier renewable energy platform at national scale.

“By integrating Sprng Energy’s high-quality utilities portfolio with our C&I [commercial and industrial] capabilities, we are significantly enhancing both the strength and resilience of our combined platform.

“Having almost achieved our ~10GWp target ahead of time, we are now on track to double capacity in the next few years. This step-up reflects not just scale, but a sharper focus on quality, execution and long-term value creation.”

Shell, a British oil and energy company, stated that the sale aligns with its strategy to refine its power-focused portfolio for improved returns.

Employees of Sprng Energy are expected to continue with the business following the completion of the transaction, ensuring operational continuity.

The final equity consideration will be determined subject to adjustments for net debt, cash and other contractually defined factors at closing.

Last month, Shell announced plans to sell its offshore wind farms in a transaction that could be worth more than $1bn as it redirects its focus away from renewables.