Torrent Power said that it has entered into a share purchase agreement (SPA) with SkyPower Southeast Asia III Investments and SkyPower Southeast Asia Holdings 2 for the acquisition of 100% securities of Sunshakti Solar Power Projects.
Sunshakti Solar Power Projects (SPV) operates 50 MW solar power project in the State of Telangana. The SPV has a long-term power purchase agreement (PPA) for its project with the Northern Power Distribution Company of Telangana (NPDCTL) for a period of 25 years at a fixed tariff of approximately Rs 5.35 per kWh, with remaining useful life of approximately 20 years. It had recorded a turnover of Rs 50.09 crore in FY 2021.
The enterprise value for this acquisition is approximately Rs 417 crore, subject to closing price adjustments, if any. The acquisition is further subject to customary conditions for transaction closure.
"This acquisition supports the company's focus area of sustainable growth through renewable energy, Torrent Power said in a statement.
Torrent Power is an integrated power utility. It is one of the largest companies in the country's power sector with a presence across the entire power value chain of generation, transmission, and distribution. It currently has an aggregate installed generation capacity of approximately 4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0. GW).
On a consolidated basis, Torrent Power's net profit jumped 14.8% to Rs 369.45 crore on 27.6% surge in net sales to Rs 3,767.43 crore in Q3 FY22 over Q3 FY21.
The scrip fell 1.20% to currently trade at Rs 535.30 on the BSE.
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