Adani Green Energy acquires 10 Essel Group companies

Gautam Adani-led renewable energy company - Adani Green Energy Limited (AGEL) is set to acquire 10 companies from debt-laden Essel Group for Rs. 1300 crore.

Adani Green Energy, in a statement, said that it has entered into a Securities Purchase Agreement for acquisition (by itself or through an affiliate) of 100% equity interest in ten Companies i.e. Essel Bagalkot Solar Energy Private Limited ("EBSEPL"), Essel Gulbarga Solar Power Private Limited ("EGSPPL"), Essel Urja Private Limited ("EUPL"), KN Bijapura Solar Energy Private Limited ("KNBSEPL"), KN Indi Vijayapura Solar Energy Private Limited ("KNIVSEPL"), KN Muddebihal Solar Energy Private Limited ("KNMSEPL"), KN Sindagi Solar Energy Private Limited ("KNSSEPL"), PN Clean Energy Limited ("PNCEL"), PN Renewable Energy Limited ("PNREL") and TN Urja Private Limited ("TNUPL") from Essel Green Energy Private Limited and Essel Infraprojects Limited.

These Essel Group companies comprise of 10 operating Solar PV companies with combined capacity of 205 MWac located across Karnataka, Uttar Pradesh and Punjab in India. This will be first acquisition of operating assets by Adani Green Energy and will help company to expand its presence in the states where the company is already operating.

The acquisition worth Rs. 1300 crore is expected to be completed by 15th October 2019. This would be second asset sale by Essel Group that is mulling ways to repay Rs. 7000 crore by the end of September.

Meanwhile, Adani Green Energy said that the portfolio it is acquiring is relatively young with average remaining PPA life of approximately 22 years. It also added that post completion of this acquisition, AGEL's portfolio of renewable generation capacity in India shall stand at 5.50 GWac with 2.43 GWac operational projects and balance 3.07 GWac in development stage.

On Friday, shares of Adani  Green Energy is trading at Rs. 46.50, up 7.04 per cent compared to previous close of Rs. 43.35. The stock had opened at Rs. 45.55 and hit an intraday high of Rs. 47.90 on the BSE.