Adani Green acquires SB Energy India at a valuation of Rs 26,000 crore

The acquired company- SB Energy Holdings Ltd has one of India’s highest quality renewable portfolios and owns 5 GW renewable assets spread across four states in India via its SPVs.

Adani Green Energy Limited (AGEL), a renewable energy company, announced this morning that it has successfully acquired SB Energy Holdings Ltd (SB Energy India) in an all-cash deal, making the latter a wholly-owned subsidiary of AGEL.  

The acquired company- SB Energy Holdings Ltd has one of India’s highest quality renewable portfolios and owns 5 GW renewable assets spread across four states in India via its SPVs. Its portfolio is split across 15 projects with an average project size of 330 MW and comprises nearly 100 per cent sovereign rated counterparties with the average tariff being Rs. 2.75 per unit.

The definitive agreements for this acquisition were signed on May 18 2021. With thorough due diligence, statutory clearances and flawless handover of the assets, the transaction was completed within four months and for an enterprise valuation of USD 3.5 billion (approximately Rs. 26,000 crore). This makes it the largest acquisition in the renewable energy sector in the country. 

Post this acquisition, AGEL will have a portfolio of 19.8 GW, which includes 5.4 GW operational assets, 5.7 GW assets under construction and 8.7 GW near construction assets. 

At 12.07 pm, the share price of Adani Green Energy Limited (AGEL) was trading at Rs 1167.2, an increase of 1.4 per cent over the previous closing price of Rs 1151.15 on BSE.