Torrent Power concludes acquisition of Maharashtra-based solar plant

Torrent Power said that it has completed transaction of acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 (SPV).

The acquisition follows the securities purchase agreement that the company had signed with Lightsource India and Lightsource Renewable Energy (India).

Lightsourcebp (LSbp) is a strategic global partnership between Lightsource Renewable Energy and British Petroleum. UK Climate Investments LLP (UKCI) is a joint venture between the Green Investment Group and the UK Government's Department for Business, Energy and Industrial Strategy.

Lightsource India is the overseas holding company, held jointly by LSbp (51%) and UKCI (49%). Lightsource Renewable Energy (India) is a 100% subsidiary of LsBP.

The enterprise value for this acquisition is around Rs 300 crore, including the viability gap funding (VGF) receivable, consequent to closing adjustments.

The SPV operates 50 MW solar power plant, commissioned in April 2018, situated in the state of Maharashtra. It has a long-term power purchase agreement with Solar Energy Corporation of India for full capacity for a period of 25 years at a tariff of Rs 4.43 per kWh.

Torrent Power currently has an aggregate installed generation capacity of approximately 4.1 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). It also has a capacity of 0.4 GW of renewable energy plants under development.

With the acquisition of 50 MW solar power plant, Torrent Power's total generation capacity, including under development portfolio, will reach to approximately 4.6 GW with renewable portfolio of more than approximately 1.5 GW.

Torrent Power is an integrated power utility. It is one of the largest companies in the country's power sector with presence across the entire power value chain of generation, transmission and distribution.

On a consolidated basis, Torrent Power's net profit jumped 14.8% to Rs 369.45 crore on 27.6% surge in net sales to Rs 3,767.43 crore in Q3 FY22 over Q3 FY21.

The scrip fell 1.42% to currently trade at Rs 487.30 on the BSE.

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