Torrent Power Buys 156 MW Wind Projects from CESC for about Rs 790 Cr

Ahmedabad-headquartered Torrent Power has bought a 100 per cent stake in Surya Vidyut Ltd from CESC Ltd, Haldia Energy Ltd and other Nominal Shareholders for an estimated enterprise value of about Rs 790 crore, subject to closing price adjustments.

September 22, 2021. By Manu Tayal

Ahmedabad-headquartered Torrent Power has bought a 100 per cent stake in Surya Vidyut Ltd from CESC Ltd, Haldia Energy Ltd and other Nominal Shareholders for an estimated enterprise value of about Rs 790 crore, subject to closing price adjustments.

However, the acquisition is subject to customary conditions for transaction closure.

Surya Vidyut Ltd is the special purpose vehicle (SPV) and a wholly-owned subsidiary of CESC Ltd and operates 156 MW wind power plants, spread across the states of Gujarat, Rajasthan and Madhya Pradesh.

Besides, CESC had already signed long-term Power Purchase Agreements (PPAs) for the projects with respective State Discoms for a period of 25 years, with a weighted average PPA tariff of Rs 4.68/ kWh.

Torrent Power, the integrated power utility of USD 3 billion diversified Torrent Group with a Market Cap of approx USD 10 billion, is one of the largest companies in the country’s power sector with a presence across the entire power value chain of generation, transmission and distribution.

Currently, Torrent Power has an aggregate installed generation capacity of approx 3,879 MW comprising of approx 2,730 MW gas-based capacity, approx 787 MW renewable capacity and approx 362 MW coal-based capacity.

Further, renewable power projects of approx 815 MW are under development, of which LOAs have been received and PPA has been executed for projects of 515 MW.

With the acquisition of 156 MW wind power plants, Torrent Power’s total generation capacity, including under development portfolio, will reach to approx 4.9 GW with a renewable portfolio of over approx 1.8 GW.

This acquisition initiates the company’s renewable energy presence in the states of Rajasthan and Madhya Pradesh and is in line with the company’s strategy to grow and strengthen its position in the Renewable Energy sector.

CESC belongs to RP-Sanjiv Goenka Group and is a vertically integrated power utility engaged in the generation, transmission and distribution of electricity. CESC (53.79%), Haldia Energy (46.21%) along with other nominal shareholders holds 100% equity share capital of Surya Vidyut Limited.
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