Adani Green rises after acquiring SB Energy Holdings

Shares of Adani Green Energy rose 1.69% to Rs 1,170.55 in intraday trade after the company completed the acquisition of SB Energy Holdings Ltd. in an all-cash deal.

The transaction pegs SB Energy India at an enterprise valuation of $3.5 billion (approx. Rs. 26,000 cr) and marks the largest acquisition in the renewable energy sector in India. With this deal, SB Energy India is now a 100% subsidiary of Adani Green.

SB Energy India has 5 Giga Watt renewable assets across four states in India through its SPVs. The portfolio holds 1,700 Mega Watt of operational renewable assets, 2,554 Mega Watt off assets under constructions and 700 Mega Watt of assets near construction. Solar capacity accounted for 84% of the portfolio, wind-solar hybrid capacity constituted 9% and wind capacity accounted for 7%.

The acquisition boosts Adani Green Energy's operational portfolio to 5.4 GW and its overall portfolio to 19.8 GW implying a 4x growth locked-in. AGEL's counterparty mix for its overall portfolio of 19.8 GW is further reinforced with 87% sovereign rated counterparties.

Vneet S. Jaain, MD & CEO of Adani Green said, This transaction takes us closer to becoming the global leader in renewables. The addition of these high-quality large utility-scale assets from SB Energy India demonstrates Adani Green Energy's intent to accelerate India's efforts to transition towards a carbon neutral future. Our renewable energy foundations will enable an entire ecosystem of new industries that can be expected to catalyse job creation in multiple sectors.

Adani Green Energy has one of the largest global renewable portfolios with 19.8 GW (giga-watts) of operating, under-construction and awarded projects catering to investment-grade counterparties. The company develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. The company's consolidated net profit soared 895.45% to Rs 219 crore on a 22.89% jump in total income to Rs 1,079 crore in Q1 FY22 over Q1 FY21.

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