Torrent Power has signed an agreement with Lightsource India Ltd and Lightsource Renewable Energy (India) Ltd for acquiring its 50 megawatt (MW) solar plant. The enterprise value for the deal is around Rs 317 crore.
In a BSE filing, Torrent Power Limited said that it has entered into a securities purchase agreement with Lightsource India Ltd and Lightsource Renewable Energy (India) Ltd for the acquisition of 100 percent share capital and all securities of Lightsource Renewables India SPV 1 Private Limited (SPV).
Based in Maharashtra, the SPV (special purpose vehicle) operates a 50 MW solar power plant, commissioned in April 2018. The SPV has a long-term power purchase agreement with Solar Energy Corporation of India Ltd (SECI) for full capacity for a period of 25 years.
The enterprise value for this acquisition has been pegged to around Rs 317 crore, including the viability gap funding (VGF) receivable. The acquisition is, however, subject to customary conditions for transaction closure.
Torrent Power, a Rs 12,173-crore integrated power utility of the Rs 20,000-crore Torrent Group is one of the largest companies in the domestic power sector with a presence across the entire power value chain of generation, transmission, and distribution.
Torrent Power currently has an aggregate installed generation capacity of 3,879 MW comprising 2,730 MW gas-based capacity, 787 MW renewable, and 362 MW coal-based capacity. Further, renewable power projects of 815 MW are under development.
With the acquisition of the 50 MW solar power plant, Torrent’s total generation capacity, including under construction portfolio will exceed 4.7 gigawatt (GW) with a renewable portfolio of more than 1.6 GW.
Meanwhile, Lightsource bp (LSbp) is a strategic global partnership between Lightsource Renewable Energy and British Petroleum. UK Climate Investments LLP (UKCI) is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. Lightsource India Limited is an overseas holding company, held jointly by LSbp (51 percent) and UKCI (49 percent).
Lightsource Renewable Energy (India) Limited is a 100 percent subsidiary of LsBP. Greenstone Advisors LLP acted as exclusive financial advisors to Lightsource India Limited for this transaction. Lightsource India Ltd, the overseas holding company, is held jointly by LSbp (51 percent) and UKCI (49 percent). Lightsource Renewable Energy (India) Ltd is a 100 percent subsidiary of LSbp.