- The Enterprise Value for this acquisition is approximately Rs 417 crore, subject to Closing Price Adjustments, if any, said Torrent Power
- Long-term Power Purchase Agreement (PPA) for the solar power project is with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years
New Delhi: Torrent Power has signed a share purchase agreement with SkyPower Southeast Asia for the acquisition of a solar power project Special Purpose Vehicle (SPV) which operates a 50 MW plant in Telangana, said the company on Saturday. “Torrent Power Limited has entered into a Share Purchase Agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited (the Sellers) for the acquisition of 100 percent securities of Sunshakti Solar Power Projects Private Limited (the SPV),” said a statement.
The SPV operates a 50 MW solar power project in the state of Telangana. Long-term Power Purchase Agreement (PPA) for the project is with Northern Power Distribution Company of Telangana Limited (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.
Torrent Power acquires solar SPV at Rs 417 cr
The Enterprise Value for this acquisition is approximately Rs 417 crore, subject to Closing Price Adjustments, if any, said Torrent Power. The acquisition is further subject to customary conditions for transaction closure.
Torrent Power, the integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore (approximately USD 2.7 billion) and Market Cap of approximately Rs 75,000 crore (approximately USD 10 billion), has presence across the entire power value chain of generation, transmission and distribution.
Torrent Power currently has an aggregate installed generation capacity of ~4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0. GW). It also has a capacity of 0.4 GW of renewable energy plants under development.
With the acquisition of the 50 MW Solar Power Plant, Torrent Power’s total generation capacity, including under development portfolio, will reach to ~4.6 GW with renewable portfolio of more than 1.5 GW, said the company.
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