Tata Power to acquire Welspun Renewables Energy assets


Mumbai : Tata Power has acquired the renewable energy (RE) subsidiary of Delhi-based Welspun Energy. It is estimated to be a Rs 9,900-crore deal. Tata Power’s renewable energy unit Tata Power Renewable Energy Ltd (TPREL) has signed an agreement to acquire Welspun Renewables Energy in “the largest transaction in renewables space in India”, the company said in a statement on Sunday night.

“This represents the largest transaction in renewables in India,” said Tata Power. It did not disclose the deal size and the seller made no comment. Welspun Energy is itself a subsidiary of the Mumbai-based Welspun Group, a multinational corporation with interests in energy, steel and textiles. Welspun Renewables Energy (WREL) has about 1,140 MW of renewable power projects comprising of about 990 MW solar power projects and about 150 MW of Wind power projects.

Of the total capacity, nearly 1,000 MW of capacity is operational and balance capacity is under advanced stages of implementation, Tata Power late on Sunday. TPRE currently operates 294 MW of renewable power capacity and 500 MW of renewable assets are being carved out of Tata Power into TPRE. Additionally, almost 400 MW of solar and wind power projects are under implementation. “The company is pursuing growth in renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities. 

The acquisition is also a significant step towards attaining the company’s objective of having non-fossil fuel based capacity up to 30-40% of its total generating capacity, “ said Anil Sardana, CEO and MD of Tata Power. JM Financial Institutional Securities Limited acted as transaction advisor to TPRE. Tata Power shares closed up 0.4% at Rs 76 on Friday on BSE.