Actis Equity Firm in talks with Shapoorji to buy their solar assets

Published Date | 2018 December 11

Actis which is a private equity firm is in advance talks with Shapoorji Pallonji Group to acquire their alternative power assets. This is expected to speed up the growth of renewable energy market in the country.
India: Actis, which is a private equity firm, is in advance talks with Shapoorji Pallonji Group to acquire alternative power assets for about $200 million as the investment firm which is emerging market-focused looks to ramp up its renewable energy capacity in the country. This acquisition is estimated to boost the growth of the renewable energy market especially solar power market. Solar PanelActis is looking forward to expanding the platform. The transaction will be made through their platform of renewable energy, Spring Energy, where it has already invested around $450 million. The deal is anticipated to include the sale of seven operational assets of Shapoorji Pallonji Solar Energy and some of the under-construction ones which have a total generation capacity of 400 MW. “Shapoorji Pallonji has mandated Credit Suisse to run a formal process to find a buyer”, sources said. According to BlueWeave Consulting, SP Solar Energy, which was found in the year 2011, has seven operational assets which have a total capacity of 270 MW while another asset which is under development is of 130 MW. The company’s major assets are located in Telangana, Tamil Nadu, Maharashtra Rajasthan, and Karnataka. The biggest facilities are located in Telangana with a total capacity of 144 MW. Actis, which majorly focuses on investments in various emerging market economies, has a strong interest in alternative energy assets in the country. Ostro Energy, launched by Actis in 2014, is the renewable energy platform that was sold to Renew Power Ventures which is led by Sumant Sinha for an enterprise value of INR 10,800 crore ($1.66 billion), which is the biggest M&A deal in the renewables sector, in the month of April this year. From a capacity of 50 MW, Ostro has now become a producer of 1.1 GW of renewable energy under Actis. Thus, if Actis acquired the Solar energy and other renewable assets of Shapoorji Pallonji Group, the solar power energy sector as well as the renewable energy sector of the country will get a major boost and grow rapidly. According to the upcoming report by BlueWeave Consulting on “Global Solar Panel Market, By Technology, By Installation Type, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, the market for Solar Panels are going to witness significant growth during the forecasted period. The abundant availability of solar energy is a viable option for non-renewable energy sources. Powered by the ever-increasing and growing demand for electricity in juxtaposition with government initiatives which are promoting the use of renewable energy sources, the global solar panel market is increasingly augmenting and will have a major positive growth in the forecasted period.