Radiance Renewables buys Azure Power’s solar rooftop assets for Rs 536 Cr

Radiance Renewables Pvt Ltd, a 100 per cent subsidiary of the Green Growth Equity Fund, a leading Climate fund managed by EverSource Capital, signed an agreement to acquire non-core solar rooftop portfolio of Azure Power Global Ltd for Rs 536 crore.

Azure Power’s rooftop portfolio generated Rs 33.1 crore in EBITDA for the 12 months ending December 30, 2020. After excluding rooftop revenues, the company’s new FY’22 revenue guidance is Rs 1,720 – 1,820 crore.

Speaking on this occasion, Ranjit Gupta, Chief Executive Officer, Azure Power said, “This sale, the first ever asset sale in Azure Power’s history, illustrates the company’s commitment to capital discipline. The sale of this non-strategic portfolio allows us to enhance returns on invested capital through efficiency gains and cost optimisation whilst recycling capital into higher return, committed projects. Our focus is on creation of shareholder value.”

On this announcement, Manikkan Sangameswaran, Executive Director, Radiance Renewables said, “This strategic acquisition will position Radiance as a significant pan India player in the Commercial, Industrial and Institutional segments with exposure to long term power purchase agreements with quality customers based on net metering in the build out of its distributed generation platform. This transaction allows Radiance to bring its high quality asset management skills to improve asset performance given its focus on enhancing and delivering value to its stakeholders. We plan to introduce cutting-edge asset management tools such as real-time monitoring with analytics and aim to make Radiance a leading Renewable Energy as a Service (REaaS) player in India.”