Tata Power subsidiary to buy Welspun Renewables Energy

Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power, has signed a share purchase agreement (SPA) with Welspun Energy (WEPL) to acquire its subsidiary Welspun Renewables Energy (WREPL).

WREPL solar and wind portfolios are spread across ten states in India, with 990MW solar power projects and about 150MW of wind power projects, summing to 1,140MW renewable portfolio.

Out of 1,140MW, approximately 1,000MW capacity is operational and the remaining capacity is under construction.

Currently, TPREL generates about 294MW renewable power and 500MW renewable assets that are being transferred from Tata Power into TPREL through legal process

In addition, about 400MW of solar and wind power projects are close to completion.

By accumulating all these assets, TPREL will be holding a renewable asset portfolio of 2,300MW making it India’s largest renewable power company.

Tata Power CEO & managing director Anil Sardana said: “The company is pursuing growth in Renewable Energy space to create value for its shareholders through various organic and inorganic growth opportunities.

“This acquisition will enable the company to deliver significant value for all stakeholders as most of the assets are revenue generating and operating assets. Tata Power can further enhance value of these assets with its operational experience and financial optimization.

“The acquisition is also a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40% of its total generating capacity”.

In this deal, JM Financial Institutional Securities acted as exclusive transaction advisor to TPREL, while KPMG India was the accounting & tax advisor and AZB & Partners acted as the legal advisor.