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Renew Power Acquires Wind Power Business Of KC Thapar Group

This is the biggest acquisition for Renew Power, which has largely grown organically. The deal would raise the company’s wind portfolio of fully commissioned projects from around 1500 MW to 1600 MW

Sumant Sinha led ReNew Power has acquired 100 per cent stake in KCT Renewable Energy Private Limited (KCTREPL) from Karm Chand Thapar (KCT) Group.

Balram Mehta, President, Wind & Asset Management, ReNew Power confirmed the news to BW Businessworld. He said, "ReNew is looking into the vast opportunities available in the field of mergers and acquisitions. We are exploring this path along with our regular growth in greenfield projects."

Marked as one of the biggest deal of the year, ReNew Power will take ownership of KCTREPL’s three fully operational plants with a total capacity of 103 MW (megawatts) in Andhra Pradesh, as reported by renewable consultancy Mercom. The acquisition boosts ReNew Power’s operational wind power generation capacity above 1,300 MW.

Mehta did not give the financial details of the transaction but sources said the acquired projects are valued at about Rs 1,000 crore and have 25-year power purchase agreements (PPA) to sell power to distribution companies at tariff of Rs 4.80 per unit, signed before the tariffs crashed further below to Rs 3.46.

This is the biggest acquisition for Renew Power, which has largely grown organically. The deal would raise the company’s wind portfolio of fully commissioned projects from around 1500 MW to 1600 MW.

KCT Group, Vikram Thapar-led arm of the business house founded by Karam Chand Thapar in 1929, has portfolio in diverse sectors including infrastructure, real estate, mining, manufacturing and others. It entered the wind energy sector in 2013 and has been trying to sell off its wind and solar energy assets. The company appointed investment bank Kotak Mahindra Capital to help find financial and strategic investors for the sale.

Investment Influx

February 2017 - The Company received $200 million investment from JERA, a joint venture of the large Japanese utilities Tokyo Electric Power and Chubu Electric Power. In exchange for the investment, JREA gained a 10 per cent stake in the company.

The company raised another $475 million through its subsidiary Neerg Energy through the sale of green bonds to overseas investors as the company sought to refinance debt from 13 green projects.

November 2017 - Canada Pension Plan Investment Board had invested approximately $200 million into ReNew Power Ventures in the form of compulsory convertible preference shares (convertible debt) that are set to convert into equity shares at the time of an initial public offering.

The investor base of ReNew Power includes Goldman Sachs, the Asian Development Bank, JERA, Abu Dhabi Investment Authority, the Global Environment Fund, and others.




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