NEW DELHI
:
ONGC NTPC Green Pvt. Ltd (ONGPL) has inked a deal to buy National Investment and Infrastructure Fund Ltd (NIIF)-backed Ayana Renewable Power Pvt. Ltd for an equity value of ₹6,600 crore, said two people aware of the development.
An announcement to this effect is to be made today. Mint reported on 7 November 2024 that a combine of state-run Oil and Natural Gas Corp. Ltd (ONGC) and NTPC Ltd had secured exclusivity to close the deal.
“The deal involves the complete sale of Ayana to ONGPL,” said one of the two people mentioned above on the condition of anonymity.
The deal will rank among the largest transactions in India’s green energy space. Standard Chartered is running the deal process. Ayana has a 5-gigawatt (GW) portfolio of operational and under-construction projects and plans to build a 10-GW portfolio by 2025. It has projects in Andhra Pradesh, Tamil Nadu, Karnataka, Rajasthan, and Gujarat.
Mint earlier also reported that ONGC, JSW Group’s JSW Neo Energy, and Singapore’s Sembcorp Industries Ltd were shortlisted to submit the binding bids for acquiring a significant majority stake in Ayana Renewable after following their submission of non-binding offers (NBOs).
Queries emailed on Wednesday to the spokespersons of ONGC, NTPC, NIIF, Ayana Renewable, and Standard Chartered weren’t answered immediately.
Bengaluru-headquartered Ayana Renewable is majority-owned by NIIF. Its other shareholders include the UK government’s British International Investment and Eversource Capital.
Given India’s ever-increasing demand for power, the country’s green energy space has witnessed tremendous interest. The country has a renewable energy capacity of 217.62 GW, with it adding 24.5 GW of solar capacity and 3.4 GW of wind capacity in 2024.
Recently, General Atlantic-owned Actis LLP inked the share purchase agreement (SPA) to buy Macquarie Group’s green energy platform Stride Climate Investments, in a deal having enterprise value of $325 million.
Also, JSW Energy Ltd’s subsidiary JSW Neo Energy Ltd announced in December that it would buy O2 Power, owned by European alternative asset manager EQT and Singapore’s Temasek, for an enterprise value of $1.47 billion.