Torrent Power gained 1.54% to Rs 498.55 after the company announced that it has acquired 156 MW wind power plants from CESC for a total acquisition cost of Rs 790 crore.
Torrent Power in an exchange filing announced that it has entered into a share purchase agreement with CESC, Haldia Energy and other nominal shareholders for the acquisition of 100% of the share capital of Surya Vidyut, a wholly owned subsidiary of CESC. Surya Vidyut operates 156 MW wind power plants, spread across the states of Gujarat, Rajasthan and Madhya Pradesh.The projects have long-term power purchase agreements (PPAs) with the respective state discoms for a period of 25 years, with weighted average PPA tariff of ₹4.68/kWh, an official statement said here.
The enterprise value estimated for the acquisition is about Rs 790 crore, subject to closing price adjustments. The acquisition is further subject to customary conditions for transaction closure. The acquisition initiates Torrent's renewable energy presence in the states of Rajasthan and Madhya Pradesh and is in line with the its strategy to grow and strengthen its position in the renewable energy sector.
Torrent Power currently has an aggregate installed generation capacity of 3,879 MW comprising of 2,730 MW gas-based capacity, 787 MW renewable capacity and 362 MW coal-based capacity. Further, renewable power projects of 815 MW are under development, of which LOAs have been received and PPA has been executed for projects of 515 MW. With the acquisition of 156 MW wind power plants, Torrent Power's total generation capacity, including under development portfolio, will reach to 4.9 GW with renewable portfolio of more than 1.8 GW.
CESC, belongs to RP-Sanjiv Goenka Group and is a vertically integrated power utility engaged in generation, transmission and distribution of electricity. CESC (53.79%), Haldia Energy (46.21%) along with other nominal shareholders hold 100% equity share capital of Surya Vidyut.
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