Torrent Power acquires 156 Mw wind power plants from CESC Ltd arm

Struck at an estimated enterprise value of Rs 790 cr, subject to closing price adjustments, the acquisition must now meet customary conditions for transaction closure

Torrent Power Limited has entered into a share purchase agreement with CESC Limited and others for 100 per cent acquisition of CESC's wholly-owned subsidiary Surya Vidyut Limited and its 156 Mw wind power plants, the company informed on Tuesday.

A special purpose vehicle (SPV) of CESC, Haldia Energy Limited and other nominal shareholders, Surya Vidyut operates 156 Mw wind power plants, spread across the states of Gujarat, Rajasthan and Madhya Pradesh (MP).

At an estimated enterprise value of about Rs 790 crore, subject to closing price adjustments, the acquisition is further subject to customary conditions for transaction closure. The projects have long term power purchase agreements (PPAs) with state discoms of Gujarat, Rajasthan and MP for a period of 25 years, with weighted average PPA tariff of Rs. 4.68/ kWh.

While Torrent Power is the integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore, CESC Limited belongs to RP-Sanjiv Goenka Group and is a vertically integrated power utility engaged in generation, transmission and distribution of electricity. CESC Limited with 53.79 per cent, Haldia Energy Limited with 46.21 per cent along with other nominal shareholders hold 100 per cent equity share capital of Surya Vidyut Limited.