Tata Power Renewable Energy (TPRE), a subsidiary of Tata Power, has agreed to acquire Welspun Renewables Energy from privately held Welspun Energy as the Tata Group firm looks to boost its renewable energy capacity.
The financial terms and conditions of the deal were not disclosed. But the acquisition will make TPRE the largest renewable power company in India with renewable assets portfolio of about 2,300 MW, Tata Power said.
Welspun Renewables Energy (WREL) has about 1,140 MW of renewable power projects comprising of about 990 MW solar power projects and about 150 MW of Wind power projects.
Of the total capacity, nearly 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation, Tata Power late on Sunday.
TPRE currently operates 294 MW of renewable power capacity and 500 MW of renewable assets are being carved out of Tata Power into TPRE. Additionally, almost 400 MW of solar and wind power projects are under implementation.
“The company is pursuing growth in renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities. The acquisition is also a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40% of its total generating capacity, “ said Anil Sardana, CEO and MD of Tata Power.
JM Financial Institutional Securities Limited acted as transaction advisor to TPRE.
Tata Power shares closed up 0.4% at Rs 76 on Friday on BSE, and were trading 0.59% up at Rs 76.45 when the markets opened on Monday.