Tata Power Company’s 100% subsidiary Tata Power Renewable Energy (TPREL), has signed a Share Purchase Agreement (SPA) with Welspun Energy (WEPL) to acquire its subsidiary Welspun Renewables Energy (WREPL). The acquisition is being made at an Enterprise Value of Rs 9,249 crore, subject to closing adjustments. This represents the largest transaction in renewables space in India.
JM Financial Institutional Securities acted as exclusive Transaction Advisor to TPREL in relation to this transaction. KPMG India Private was the Accounting & Tax Advisor. AZB & Partners acted as the Legal Advisor for this transaction.
WREPL has one of the largest operating solar portfolios in India spread across ten states. It has about 1,140 MW of Renewable Power Projects comprising of 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.
TPREL is currently operating 294 MW of Renewable power capacity and 500 MW of Renewable assets are being carved out of Tata Power into TPREL through a court process. In addition, almost 400 MW of Solar and Wind power projects are under implementation. Thus, TPREL with all these assets would have renewable assets portfolio of about 2,300 MW making it the largest Renewable Power Company in India.
| Company Name | CMP |
|---|---|
| NTPC | 402.20 |
| Tata Power | 436.00 |
| Adani Power | 225.15 |
| Power Grid Corp | 313.90 |
| Torrent Power | 1724.80 |
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