RBI's M&A norms: HSBC India funds Waaree's ₹1,255 crore acquisition

The transaction marks one of the first acquisition financing deals executed by a private or foreign bank under the RBI's revised framework for bank-funded acquisitions

HSBC India has financed Waaree Renewable Technologies’ ₹1,255 crore acquisition of a 55 per cent stake in Associated Power Structures Private Ltd (APSPL), marking one of the first acquisition-financing deals executed under the Reserve Bank of India’s (RBI’s) revised framework by a private or foreign bank. The transaction was funded through a combination of debt from HSBC and equity contributed by Waaree. 

The transaction follows the RBI's amendment to the Commercial Banks–Credit Facilities Directions on March 30, 2026, which liberalised the acquisition-financing framework for banks. 

Although the revised norms come into effect from July 1, banks have the option of adopting them earlier. 

 

HSBC implemented the framework ahead of the effective date, enabling it to facilitate the Waaree transaction. 

HSBC said the transaction was a landmark rupee-denominated acquisition-financing deal, and among the first delivered by a bank in India under the revised framework. 

“This is one of the first such transactions executed by a bank in India and, to the best of our knowledge, the first by either a foreign bank or a private sector bank in the country. With the successful closure of this transaction, we have been actively working to build the pipeline, which remains strong, and we expect to see more such transactions in the months ahead,” said Chetan Joshi, cohead of financing solutions, HSBC India. 

According to HSBC, the revised acquisition-financing regime creates a new funding avenue, and unlocks additional liquidity for Indian corporates pursuing domestic acquisition-financing. 

In a regulatory filing, Waaree said it acquired 55 per cent stake in APSPL for ₹1,225 crore, and that the acquisition was done through a combination of allotment of shares under a primary acquisition and transfer of shares under a secondary acquisition. 

Consequent to the completion of the acquisition, APSPL has become a subsidiary of Waaree Renewable Technologies. 

Earlier in May, the company executed definitive agreements in relation to the acquisition, including a Shareholders Agreement and a Share Purchase and Subscription Agreement. Prior to the transaction, Waaree did not hold any stake in APSPL. 

Earlier this month, State Bank of India Chairman C S Setty had said that the bank has completed its first acquisition-financing transaction, and is looking to close another one soon.