Torrent Power is in talks with ReNew Energy Global to acquire green power plants totalling 1.1 gigawatts (GW) for $1.2 billion, according to a report by Mint. The Ahmedabad-based firm has submitted a non-binding offer (NBO) for ReNew's solar and wind assets of 350 and 450 Mw for $450 million, the publication said.
According to news reports in November 2022 stated ReNew's plan to sell its operational, clean energy capacity as part of its capital recycling strategy. The proceeds will be reinvested in building new green energy assets. The talks around valuations are still going on.
"No sell-side bank has been appointed for this transaction by ReNew. The talks over valuation are underway between Torrent and ReNew," a soucre privy to the development told Mint.
ReNew Power was founded in 2011 and is among the latest entrants in India's green energy sector. It has a 13.64 Gw portfolio. In August 2021, the company merged with RMG Acquisition Corp II to form ReNew Energy Global Plc. It has also partnered with Indian Oil Corp and L&T to form a tripartite JV for green hydrogen. In December, the company signed a pact with Microsoft India to supply 150 Mw of green energy.
Sumant Sinha, chairman and CEO of ReNew Power, had said, "The partnership will help contribute towards Microsoft's ambition of shifting to 100 per cent supply of renewable energy by 2025." The company also said that it would invest Rs 30,000 crore in the next two years to scale up its solar and wind power generation capacities.
Torrent Power, on the other hand, has a power generation capacity of 4.16 Gw. It supplies electricity to Dadra and Nagar Haveli, Daman and Diu, Ahmedabad, Gandhinagar, Surat, Dahej special economic zone, Dholera special investment region, Bhiwandi, Shil, Mumbra, Kalwa and Agra.
It recorded an over 31 per cent rise in its consolidated net profit at Rs 484.19 crore in the September quarter, mainly due to higher revenues.