ReNew Power Ventures Pvt. Ltd., one of the most reputed names across the India renewable energy industry, has made it to the front page for its latest acquisition. As per authentic sources, the company has purchased Ostro Energy Private Ltd, backed by Actis LLP, in what may seem to be one of the largest ever deals signed in India renewable energy industry.
For the uninitiated, ReNew Power is backed by two pivotal investors – the Canada Pension Plan Investment Board (CPPIB) and Goldman Sachs. The company also includes the Global Environment Fund, JERA Co Inc., and Abu Dhabi Investment Authority as other investors. Currently, ReNew is valued at USD 2 billion, with Goldman accounting for more than 50% stake in the firm. The company boasts of nearly the same number of solar and wind energy assets with regards to the installed capacity.
Ostro Energy on the other hand, has effortlessly established its stance in the renewable energy industry with its sole focus on wind power projects. As per authentic reports, the deal valuation has been funded conjointly by the CPPIB and ReNew’s cash. The equity component amounting to around USD 614.34 million (approx. INR 40 billion) was apparently provided by CPPIB, claim reports.
Sources familiar with the matter further affirmed that ReNew will borrow around INR 60 billion from Ostro. What’s more, the CPPIB stated that apart from the equity component, it has poured a further of USD 247 million in ReNew to push forward its acquisition deal with Ostro.
Experts claim that with this takeover, ReNew Power’s overall clean energy capacity will be valued at more than 5.6 GW, out of which 65% is already operational. They further stated that the agreement is certain to prove lucrative for both the firms to consolidate their positions in India renewable energy industry.
For the record, ReNew has not disclosed any financial terms of the transaction. However, it is being speculated that Ostro has been purchased for an enterprise valuation of around INR 100 billion, inclusive of debt and equity.
