AGEL finalizes India's largest acquisition in renewable energy sector


Indian renewable energy company, Adani Green Energy Ltd. (AGEL) has reportedly finalized the purchase of SB Energy Holdings Ltd. in an all-cash agreement.

Following this acquisition, SB Energy India will account for a valuation of USD 3.5 billion (Rs 26,000 crore), grading as one of the largest acquisitions in the Indian renewable energy sector.

SB Energy India is now a 100% arm of AGEL. Previously, it was an 80:20 partnership between SoftBank Group Corp. of Japan and Bharti Group.

Adani Group Chairman, Gautam Adani stated earlier last week that the company would devote around $20 billion to renewable energy generation over the next ten years.

As for the recent move, AGEL's MD and CEO, Vineet S. Jaain, said that they are one step closer to becoming the global leader in renewables with this deal.

Adani Green Energy's intention to advance India's efforts to transition to a carbon-free future is demonstrated by the addition of these superior big utility-scale resources from SB Energy India, said Mr. Jaain.

He added that the renewable energy foundations will support a whole ecosystem of new companies, likely resulting in employment development across many industries.

Through its SPVs, SB Energy India possesses 5GW of renewable assets spread across four Indian states. There are 1,700 MW of effective renewable assets in the portfolio, 2,554 MW of assets under development, and 700 MW of projects in the pipeline.

Adding further, its solar capacity compensates 84% of the portfolio (4,180 MW), wind-solar hybrid capacity covers up 9% (450 MW), and wind capacity makes up 7% of the portfolio (324 MW).

Sources consider it as one of India's finest quality renewable portfolios, with 15 projects comprising 330 MW. Many assets are solar park-based projects built utilizing best-in-class governance, project development, construction, and operations and maintenance standards.

Estimates suggest that AGEL's operational portfolio will increase to 5.4 GW, and its entire portfolio will rise to 19.8 GW, suggesting a 4x growth. In addition, AGEL's entire counterparty mix of 19.8 GW is bolstered by 87% sovereign grade counterparties.

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