Piramal Group is planning to acquire the entire wind portfolio of PTC India across Madhya Pradesh, Karnataka and Andhra Pradesh, which is likely to cost the company around Rs 2,200 crore, the sources said.
The $10-billion glass-to-financial services major Piramal Enterprises is in talks with PTC India to acquire its subsidiary PTC Energy’s 290 mw wind assets as part of their strategy to expand investments in renewable sector – wind and solar – people close to the development told FE.
Piramal Group is planning to acquire the entire wind portfolio of PTC India across Madhya Pradesh, Karnataka and Andhra Pradesh, which is likely to cost the company around Rs 2,200 crore, the sources said. PTC India recently mandated KPMG to advise on various fund-raising options where it may sell a major stake in the wind power business to a strategic investor or look at complete sale of assets.
When contacted, PTC India spokesperson said in an email response that, “PTC India is considering various options for funding growth of its subsidiary PTC Energy (PEL), including getting a suitable strategic investor on board. Beyond this, we have nothing to share.” Spokesperson of Piramal Capital and Housing Finance, a financial services arm of Piramal Enterprises, refused to comment, saying “We do not comment on speculations.”
While PTC India is looking to exit its wind power portfolio, Piramal Enterprises has been investing into renewable portfolios across India as renewable sector is witnessing significant consolidation. In the last three years, the group has invested close to Rs 2,800 crore in renewable companies such as Renew Power, Essel Infrastructure, and ACME Solar through its global investment partners.
Piramal on Tuesday signed a memorandum of understanding with Canadian Pension Plan and Investment Board (CPPIB) to co-sponsor an infrastructure investment trust to invest in renewable assets with a corpus of $600 million or Rs 4,200 crore. Ajay Piramal, chairman of Piramal Group, said, the renewable energy sector is at an inflection point and is witnessing significant consolidation, the pace of which is likely to increase in the near future.
“We believe that the timing is opportune for aggregating assets in this sector, given that existing players are willing sellers in light of a constrained capital market environment in both debt and equity,” Piramal said.