Tata Power to acquire Welspun Renewable Energy

The Dollar Business Bureau 

Tata Power announced that it will acquire Welspun Renewable Energy Pvt (WREPL) for an undisclosed amount. Welspun Renewable Energy Pvt is a subsidiary of Welspun Energy.

In a statement released, it was announced that the subsidiary of Tata Power, Tata Power Renewable Energy will acquire WREPL through share purchase agreements.

WREPL has the largest operating solar portfolios and is spread across 10 states. It has 1,140 MW of renewable power project works consisting of about 990 MW solar power projects and 150 MW of wind power projects. Sources from the market have said that the deal size could range between Rs.6000 to 7000 crore. 

Of the total 1,140 MW of the renewable portfolio, nearly 1000 MW of the capacity is operational and the rest of them are in implementation stages.

Presently, TPREL operates 294 MW of renewable power capacity. However, 500 MW of the renewable assets is being carved out of Tata Power into TPREL legally. Apart from this, somewhere around 400 MW of solar and wind power projects are under implementation. 

Tata Power has claimed that with all these assets TPREL would have renewable assets portfolio of about 2,300 MW making it the largest renewable power company in India.    

Tata Power CEO and Managing Director Anil Sardana said, “"the company is pursuing growth in renewable energy space to create value for its shareholders through various organic and inorganic growth opportunities.”

This acquisition will help the company to deliver significant value to the shareholders as majority of the assets are operating and revenue generating ones. Tata power can also further enhance the asset value through financial optimization and operational experience.

Sardana added that this deal is a significant step towards achieving the objective of the company of having non-fossil fuel based capacity up to 30-40 percent of its total capacity.