Sumant Sinha-led Re-New Power Ventures has finalised the takeover of Ostro Energy for an enterprise value of ₹10,800 crore ($1.66 billion), the biggest M&A deal in the renewables sector, sources close to the deal said.
The deal, part of the wave of consolidation in the rapidly-expanding sector, makes ReNew Power the largest renewable energy company in the country with total commissioned and under-construction assets of about 4,300 MW.
It is now well ahead of Tata Power Renewable Energy, which, with its ₹9,249 crore acquisition of Welspun’s assets in June 2016, is in the second spot with total renewable assets of around 2,300 MW.
ReNew will pay around ₹4,500 crore as equity, while the remaining ₹6,300 crore will be the debt component. “ReNew believes these are excellent assets of a quality that few players in the country have,” said one of the sources. “Since most of them are operational, they also mitigate the risks associated with Greenfield projects.”
Neither ReNew Power nor Ostro Energy was willing to confirm the development.
Ostro Energy, set up in June 2014, has commissioned wind assets of 648 MW and another 350 MW are in the pipeline. It is also building around 110 MW of solar projects, making it a total of 1,108 MW across the states of Andhra Pradesh, Telangana, Karnataka, Rajasthan, Gujarat and Madhya Pradesh. Read More…