Azure Power Global has signed a binding agreement to sell its solar rooftop portfolio to Radiance Renewables for Rs 536.5 crore.
Azure Power Global has signed a binding agreement to sell its solar rooftop portfolio to Radiance Renewables for Rs 536.5 crore. The company, which is listed on the New York Stock Exchange, expects to receive the proceeds from the sale before December 31, 2021.
Azure’s 167 megawatts (MW) rooftop solar capacity includes 151 MW of installed and 16 MW of under-construction projects. “This sale, the first-ever asset sale in Azure Power’s history, illustrates the company’s commitment to capital discipline,” Ranjit Gupta, chief executive officer, Azure Power said. Out of Azure’s pan-India solar portfolio of 6.9 gigawatts (GW), 2 GW are operational and 0.9 GW are under construction.
The company’s remaining 4 GW have received a letter of the award but their power purchase agreements have yet to be signed with the Solar Energy Corporation of India (SECI). Azure’s untied capacity is a part of the 12 GW projects awarded in the maiden auction for the manufacturing-linked solar scheme, through which Adani Green Energy will build 8 GW generation capacity and Azure will develop 4 GW and supply power at Rs 2.92/unit. As a part of the deal, the two companies will also build 3 GW of solar manufacturing capacities in the country (Adani 2 GW and Azure 1 GW).
Radiance, the buyer of Azure’s rooftop portfolio, is a 100% subsidiary of Green Growth Equity Fund which is managed by EverSource Capital. Radiance now manages an operational capacity of 95 MW across Maharashtra, Tamil Nadu, Karnataka, Chhattisgarh, Telangana and Rajasthan and has close to 40 MW of projects under construction and another 60 MW under development.