UK based emerging market investor, Actis LLP is looking at the sale of Delhi headquartered Ostro Energy Pvt Ltd to ReNew Power Ventures, Gurgaon based developer, the live Mint has reported. The transaction may rank among India’s most prominent renewable energy deals.
In July 2015, Actis committed to fully fund Ostro’s business plan with a funding commitment of US$280 million thereby ensuring availability of equity for all its projects.
The funding helps them to achieve a significant market share in the wind sector with an operational capacity of 648.1 MW in the states of Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh. Currently, over 460 MW of wind and solar projects are under construction across Karnataka, Gujarat, Rajasthan & Telangana.
The company is further planning to increase its solar portfolio in India to follow the pace of its wind market and to build 1,000 MW of renewable energy projects by 2019.
Therefore, Vinay Rustagi, managing director at consulting firm Bridge to India, believes it is an interesting deal. He told live Mint, “If we look at the developer landscape, there are very few platforms offering scale, asset quality, and transparency. With a portfolio size of almost 1,000 MW, Ostro is one of the most attractive buy prospects in the sector.”
“Closures (of deals) have been held up because of the wide gap between expectations of buyers and sellers. But things are coming to a head, and we expect frantic activity in the next 12-18 months,” Rustagi added.
However, several people aware of the deal, requested anonymity and one of them said, “ReNew is looking at the Actis platform. There are not many players who have capital at their disposal to make such large acquisitions.”
ReNew Power has around 3.5 GW of operational and under-construction capacity from its wind and solar projects. The firm has set a target of over 11 GW of wind and solar power capacity over next five years.