Adani adds Rs 26k-cr assets to green biz

By: |
May 20, 2021 5:45 AM

SB Energy is an 80:20 joint venture between Japan's SoftBank Group and India's Bharti Enterprises, and houses 4,954 megawatt (MW) of renewable energy projects across the country.

AGEL’s renewable portfolio at the end of FY21 stood at 14,840 MW, out of which 3,520 MW is operational and the remaining under construction.

In one of the largest acquisitions in the renewable energy space in the country, Adani Green Energy (AGEL) on Wednesday acquired 100% interest in SB Energy India at an enterprise valuation of $3.5 billion (approximately Rs 26,000 crore).

SB Energy is an 80:20 joint venture between Japan’s SoftBank Group and India’s Bharti Enterprises, and houses 4,954 megawatt (MW) of renewable energy projects across the country.

The transaction, subject to customary approvals and conditions, is expected to be completed by August, and will help AGEL achieve total renewable capacity of 24,300 MW.

This is the fifth successive deal in the solar space by Adani Green. In FY21, the company had acquired the assets of Essel Group (205 MW), Sterling and Wilson (75 MW), SkyPower Global (50 MW), and Hindustan Powerprojects (20 MW).

“This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030,” Gautam Adani, chairman of Adani Group, said.

AGEL’s renewable portfolio at the end of FY21 stood at 14,840 MW, out of which 3,520 MW is operational and the remaining under construction.

Out of SB India’s total portfolio, only 1,400 MW is operational and the balance under construction. The company’s operational and upcoming projects are located in Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh. All projects have 25-year power purchase agreements with sovereign rated counter parties such as Solar Energy Corporation of India, NTPC and NHPC.

“As SoftBank Group continues our transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth,” Masayoshi Son, chairman and CEO of SoftBank Group Corp, said.

AGEL posted a profit of Rs 182 crore in FY21 on a consolidated basis against a loss of Rs 68 crore in FY20, mainly due to higher power sales from the company’s rising renewable energy base. French energy major Total has acquired a 20% minority interest in AGEL from Adani Group for around $2 billion. The transaction followed Total investing $510 million in April 2020 for the acquisition of a 50% stake in AGEL’s operational solar projects in the country.

Commenting on Wednesday’s transaction, Sunil Bharti Mittal, chairman, Bharti Enterprises, said, “I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India.”

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