Torrent Power Limited has entered into a share purchase agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited for the acquisition of 100% securities of Sunshakti Solar Power Projects Private Limited.
Sunshakti Solar Power Projects Private Limited which is a special purpose vehicle, operates 50 MW solar power project in the state of Telangana. Long-term Power Purchase Agreement (PPA) for the Project is with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years at a fixed tariff of approx. Rs 5.35 per kWh, with remaining useful life of approx. 20 years.
Enterprise Value for this acquisition is approx. Rs 417 crore subject to closing price adjustments, if any. The acquisition is further subject to customary conditions for transaction closure.
Torrent Power currently has an aggregate installed generation capacity of 4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). It also has a capacity of 0.4 GW of renewable energy plants under development. With the acquisition of 50 MW solar power plant, Torrent Power’s total generation capacity, including under development portfolio, will reach 4.6 GW with a renewable portfolio of more than 1.5 GW.
Torrent Power, the integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore and market cap of approx. Rs 75,000 crore, is one of the largest companies in the country’s power sector with presence across the entire power value chain of generation, transmission and distribution.