It was reported in November 2017 that Actis LLP is looking at the sale of Delhi headquartered Ostro Energy Pvt Ltd to ReNew Power Ventures Pvt Ltd, Gurugram based developer, the said deal has now been concluded. The latter has announced yesterday, April 2, the acquisition of Ostro Energy.
The acquisition is mentioned as India’s largest renewable energy transaction, which is said to be more than INR 100 billion ($1.54 billion), the Bloomberg has reported. The company is supposed to have paid 40% in equity and the rest in debt.
ReNew Power currently has green energy assets of more than 4.5 GW, which include a commissioned capacity of approximately 2.8 GW. Ostro Energy has a total capacity of more than 1.1 GW, out of which nearly 850 MW is already commissioned.
With the acquisition of these assets, ReNew Power, backed by investors such as Goldman Sachs Group Inc, Japan’s Jera Co, Abu Dhabi Investment Authority, and Canada Pension Plan Investment Board (CPPIB), will become India’s largest renewable energy company with the combined capacity of more than 5.6 GW. The company has informed that more than 65% of the assets of the combined entity are already operational.
ReNew Power has mentioned that CPPIB has invested an additional $247 million to support ReNew Power’s financing for Ostro Energy acquisition. As a result, the Canadian firm’s combined investment in ReNew Power now stands at $391 million, following an earlier investment of $144 million in January 2018.
As per the record, before this deal, Tata Power Co Ltd’s acquisition of Welspun Renewable Energy Pvt Ltd (now known as Avaada Energy) in 2016 at an enterprise value of INR 92.49 billion ($1.45 billion) for its then entire green energy portfolio was India’s most significant renewable power deal.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.