ReNew to sell 300 MW solar project in Rajasthan to IndiGrid for $199 Mn
ReNew announced on Monday that it has signed a Share Purchase Agreement with India Grid Trust (IndiGrid) to sell a 300 MW solar project in Rajasthan – ReNew Solar Urja Private Limited – for a total enterprise value of $199 million. The transaction is expected to close in accordance with PPA conditions. Approximately $8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds, after the first payment is realized by RSUPL.
“The sale reaffirms strong investor interest in assets developed by ReNew and is aligned with the company’s strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities,” a statement issued by ReNew said. It adds, “After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately $82 million, including change-in-law proceeds for ReNew.”
Commenting on the transaction, Kailash Vaswani, Group CFO of ReNew, said, “We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilized assets.”
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ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021. The project has a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of Rs. 2.71 per unit. The project has been operational and revenue generating for the past two years. In 2022-23, the solar project delivered a net PLF of 27.42%.
