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ReNew to sell 300 MW solar project to India Grid Trust for Rs 1550 crore


ReNew, India’s leading decarbonization solutions company, announced on Monday that it has signed a Share Purchase Agreement with India Grid Trust to sell a 300 MW solar project in Rajasthan – ReNew Solar Urja Private Limited (RSUPL)- for a total enterprise value of $199 million (Rs 1550 crore).

India Grid Trust is an infrastructure investment trust (InvIT). The transaction is expected to close following power purchase agreement conditions.

Approximately $8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds after the first payment is realized by RSUPL.

Post the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately $82 million, including change-in-law proceeds for ReNew.

“We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilized assets,” said Kailash Vaswani, Group CFO of ReNew.

ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021. The project has a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.71 per unit. The project has been operational and revenue-generating for the past two years. In 2022-23, the solar project delivered a net PLF of 27.42%.“RSUPL is a high-quality solar generation asset located in one of the highest irradiation regions of India with a reasonable operating track record. In-line with our strategic focus, RSUPL will help us ensure sustainable growth of our portfolio and aid in long-term cash-flow addition,” said Harsh Shah, Chief Executive Officer, and Whole Time Director of IndiGrid.The company added that RSUPL is a strategic addition to IndiGrid’s portfolio as it would be the largest capacity project located at a single site for the company. “With this acquisition, IndiGrid’s peak solar capacity will cross 1 GW of operating solar assets and the total Assets Under Management (AUM) of Rs 28500 crore,” it said.

This acquisition will be funded through a combination of equity, internal accruals, and debt. “The net debt/AUM will be 62.5% post this acquisition, leaving adequate headroom for future growth,” IndiGrid said.

During the first 9 months of this fiscal, IndiGrid has done equity fundraising to the tune of Rs 1,050 crore through preferential allotment and institutional placement. This has paved growth headroom for the company of Rs 6,000 – 7,000 crores at a leverage threshold of 70% as per SEBI InvIT Regulations.


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