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Cash-starved Shapoorji Pallonji sells solar assets to KKR for Rs 1,554 crore

Given the government's ambitious target of achieving 175GW of renewable energy capacity by 2022, KKR believes this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India

twitter-logoPB Jayakumar | April 27, 2020 | Updated 19:18 IST
Cash-starved Shapoorji Pallonji sells solar assets to KKR for Rs 1,554 crore

Key Highlights:

  • Shapoorji Pallonji Infra sells 317 MW of operational solar assets
  • 169 MW in Maharashtra and 148 MW in Tamil Nadu
  • KKR's second infra deal in India
  • SP Group was recently in news for unconfirmed plans to pledge shareholding in Tata Sons

Shapoorji Pallonji Infra, part of Tata Son's major shareholder Shapoorji Pallonji Group, has sold its 317 megawatt(MW) of five operational solar energy assets to global investment firm KKR for Rs 1,554 crore ($204 million).

These are operational assets of 169 MW in Maharashtra and 148 MW in Tamil Nadu. Further details of the deal were not disclosed. KKR makes its investment through its infrastructure fund.

"This deal further demonstrates SP Infra's continued track record of developing high-quality infrastructure assets in its chosen spaces, creating value for further growth in its businesses, and be the partner of choice for high-quality international investors like KKR," said Mukundan Srinivasan, Managing Director of SP Infra.

Given the government's ambitious target of achieving 175GW of renewable energy capacity by 2022, KKR believes this is an attractive time to invest in this portfolio and provide even greater solar energy solutions to communities across India, says Sanjay Nayar, CEO of KKR India. "Looking ahead, we are excited to explore even more renewable energy opportunities in India and overseas," said David Luboff, Head of Asia Pacific Infrastructure at KKR.

Recently, KKR-backed India Grid Trust (IndiGrid) had acquired transmission assets from Sterlite Power for ?1,050 crore. KKR and Singaporean sovereign wealth fund GIC, had earlier acquired up to 57 percent of IndiGrid for about $400 million. Mumbai based Shapoorji Pallonji Infrastructure Capital Company focuses on power, roads and ports. The $5 billion Shapoorji Pallonji Group with a legacy of 154 years, operates in over 70 countries with a global turnover of over $5 billion.

Flagship Shapoorji Pallonji & Co was recently in the news for repaying-refinancing debt worth Rs 3,000 crore of bank dues as on March 31. There were reports that the group was planning to pledge it's 18.5 per cent stake in Tata Sons, which controls the Tata Group. Reportedly, the Mistry family which owns the SP Group, had infused over Rs 2,500 crore over the past 18 months. Its solar power company Sterling & Wilson Solar had raised Rs 1,900 crore from a recent IPO. Reports say the Group had assured lenders to sell its land bank and solar, road and overseas assets to reduce its standalone debt of over Rs 9,000 crore as of September 2019. The group has presence in engineering and construction, infrastructure, real estate, water, energy and financial services.

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