Torrent Power Limited announced on Saturday that it has acquired a 50 MW Solar Power Project from SkyPower Group. The enterprise value for this acquisition is approx. Rs 417 crore subject to closing price adjustments, if any.
"Torrent Power Limited has entered into a Share Purchase Agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited (the Sellers) for the acquisition of 100% securities of Sunshakti Solar Power Projects Private Limited (the SPV)," noted the firm in an official statement.
The SPV (special purpose vehicle) operates a 50 MW Solar Power Project in Telangana.
Long-term Power Purchase Agreement (PPA) for the project is with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years at a fixed tariff of approximately 5.35 per kWh, with remaining useful life of around 20 years. The acquisition is further subject to customary conditions for transaction closure.
Torrent Power is a leading power sector firm and has a presence across the entire power value chain of generation, transmission and distribution.
Torrent Power currently has an aggregate installed generation capacity of 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 the 50 MW Solar Power Plant, Torrent Power's total generation capacity, including under development portfolio, will reach to 4.6 GW with a renewable portfolio of more than 1.5 GW.
Also read: Torrent Power raises Rs 600 cr through NCD issuance
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