Adani Green Energy (AGEL) rose 3.17% to Rs 1,236.90 after the company signed share purchase agreements for the acquisition of 100% interest in SB Energy India from SoftBank Group (SBG) (80% stake) and Bharti Group (20% stake).
SB Energy India has a total renewable portfolio of 4,954 MW (mega-watt) spread across four states in India. The cash transaction values SB Energy India at an enterprise valuation of approximately $3.5 billion (approx. Rs 26,000 cr.), making it the largest acquisition in the renewable energy sector in India.
The target portfolio of Adani Green Energy (AGEL) consists large scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW) and 7% wind capacity (324 MW). The portfolio comprises of 1,400 MW operational solar power capacity while a further 3,554 MW is under construction. All projects have 25-year PPAs with sovereign rated counterparties such as Solar Energy Corporation of India (SECI), NTPC and NHPC.
The acquisition will enable AGEL to achieve its target renewable portfolio of 25 GW (giga-watt) four years ahead of the target timeline. The portfolio comprises of high quality, large scale utility renewable assets, which are expected to be value accretive to its shareholders. The transaction is expected to be completed by August 2021.
Post completion of this acquisition, AGEL shall have total renewable capacity of 24,294 MW with operating renewable capacity of 4.9 GW (giga-watt), including 14,874 MW awarded and under implementation projects and 4,500 MW projects where AGEL has been declared as L1 bidder.
Gautam Adani, the chairman of Adani Group, said: "This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world's largest solar player by 2025 and thereafter the world's largest renewable company by 2030. We are well on our way to achieve our stated solar portfolio targets four years before the deadline we set for ourselves."
Commenting on the same, Sunil Bharti Mittal, the chairman of Bharti Enterprises, stated: "Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold."
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Adani Green Energy's consolidated net profit soared 62.5% to Rs 104 crore on 41.3% surge in net sales to Rs 979 crore in Q4 FY21 over Q4 FY20.
AGEL has one of the largest global renewable portfolios with 15 GW (giga-watts) of operating, under-construction and awarded projects catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects.
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