MUMBAI: Tata Power Renewable Energy (TPRE) has agreed to acquire Welspun Renewables Energy from privately held Welspun Energy to boost its renewable energy capacity.
Financial terms of the deal were not disclosed. But earlier reports had pegged the deal at around $1.45 billion.
The acquisition will make TPRE the largest renewable power company in India, with renewable assets portfolio of about 2,300 megawatt (MW).
Welspun Renewables Energy (WREL) has about 1,140 MW of renewable power projects comprising about 990 MW solar power projects and 150 MW of wind power projects. Of the total capacity, nearly 1,000 MW is operational, while balance capacity is under advanced stages of implementation, the company said in a statement issued on Sunday.
TPRE currently operates 294 MWof 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 generation,” said Anil Sardana, CEO and MD of Tata Power.
JM Financial Institutional Securities Limited acted as transaction adviser to TPRE.
Tata Power shares closed up 0.4% at Rs 76 on the Bombay Stock Exchange on Friday.