Tata Power Acquires Welspun Energy’s Renewable Assets

Mumbai: Tata Power Renewable Energy, a wholly owned subsidiary of Tata Power, has signed a share purchase agreement on Sunday night to acquire Welspun Energy’s subsidiary, Welspun Renewable Energy Pvt Ltd (WREPL), the company notified Bombay Stock Exchange (BSE).

                    

This represents the largest transaction in renewables space in India. WREPL has one of the largest operating solar portfolios in India spread across ten states.

“It has about 1,140 mega watt (MW) of renewable power projects comprising about 990 MW solar power projects and about 150 MW of wind power projects,” it added. The company’s notification to the BSE said that the acquisition was being made at an enterprise value of Rs 9,249 crore.

Out of 1,140 MW renewable portfolio, nearly 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation.

Tata Power Renewable Energy Limited (TPREL) currently operates 294 MW of renewable power capacity and 500 MW of renewable assets are being carved out of Tata Power into TPREL through a court process. In addition, almost 400 MW of solar and wind power projects are under implementation.

Thus, TPREL with all these assets, would have renewable assets portfolio of about 2,300 MW making it the largest renewable power company in India, Tata Power has claimed.

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, he added.

Tata Power’s shares were down 0.79 percent at Rs 75.35 per share on the BSE, while the benchmark BSE Sensex was down 1.07 percent on Monday.

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