By
Grapevine: Adani Green, Amplus eye deals; Cube Highways mulls stake sale, InvIT
Photo Credit: Thinkstock

Clean energy developer Adani Green Energy Ltd (AGEL) is in advanced discussions to acquire a 250MW solar power project operated by Hero Future Energies (HFE), The Economic Times reported on Monday.

The acquisition will see AGEL picking up the power purchase agreement (PPA) signed by HFE for the Jodhpur-based project in 2018, the report said, citing two people aware of the developments.

AGEL is expected to pay around Rs 4 crore (about $546,000) per MW, the people said. The 25-year PPA was signed at a tariff of Rs 2.53 (about 3 cents) per MW and was expected to be commissioned by October 2020.

As per the report, AGEL currently has a total renewable capacity of 14.8GW, including 11.6GW that have been awarded and are under implementation. The company is aiming to achieve a capacity of 25GW by 2025.

This is not the first deal involving HFE, though. On Saturday, Mint reported that EQT and Temasek-promoted O2 Power would acquire a 49% stake in a special purpose vehicle (SPV) operated by HFE.

The SPV called Clean Solar Power Bhainsada is setting up a 250MW solar plant in Rajasthan, the report said, citing two people aware of the transaction. The SPV had signed a PPA with the Solar Energy Corporation of India at the same tariff for the Jodhpur facility.

For HEF, the sale is part of an overall transaction in which the company has mandated HSBC to sell 500MW of pre-construction assets. The company has an installed capacity of 1.7GW, with an additional 1.5GW under construction. It aims to build a 3.5GW operating portfolio by next year.

For O2 Power, meanwhile, the acquisition will help it reach a 1.23GW portfolio. O2 Power is a $500 million (about Rs 3,662 crore) renewable energy platform that was set up by former ReNew Power executives Parag Sharma, Peeyush Mohit, Rakesh Garg and Nimish Agarwal.

In a separate solar energy transaction involving ReNew Power, Amplus Energy Solutions is in talks to acquire the former’s rooftop portfolio that has a capacity of 140MW, Mint reported on Saturday, citing two sources.

Amplus, owned by Malaysia’s state-run oil and gas company Petroliam Nasional Bhd (Petronas), has an 800MW solar portfolio.

The potential acquisition, if successful, will mark one of the largest deals in India’s solar rooftop space. “We keep on exploring consolidation opportunities in the C&I (commercial and industrial) space,” Amplus founder and managing director Sanjeev Aggarwal said, according to the report.

However, ReNew Power founder and MD Sumant Sinha declined to comment. The reported talks come just days after the company said it would float in the US by merging into a blank-cheque firm listed in the country. The move will give it an enterprise valuation of around $8 billion (about Rs 58,590 crore).

Separately, private sector toll roads and infrastructure operator Cube Highways is looking to sell a 25% stake in the company, Mint reported on Monday.

The firm, which operates 27 highways totalling 8,400km, is also exploring the possibility of an infrastructure investment trust (InvIT), the report said, citing two people aware of the developments.

To this end, Citibank and JPMorgan are advising Cube Highways on the possibility of a stake sale and InvIT formation. Investors in the Singapore-based operator include private equity firm I Squared Capital, International Finance Corporation, Abu Dhabi Investment Authority and a clutch of Japanese investors.

In September 2020, Cube Highways said that it had tied up with State Bank of India (SBI) for a Rs 3,500 crore (about $477 million) loan facility to help acquire road projects on a toll-operate-transfer (TOT) basis.

Speaking of SBI, the country’s largest public-sector bank is looking to enter the aircraft leasing business in India, The Economic Times reported on Monday.

The bank is currently evaluating its options to handle such a business unit in GIFT City, subject to regulatory approvals and business viability, said Ashwini Tewari, who is the managing director responsible for international banking, technology and subsidiaries.

SBI is also looking for a foreign partner for this proposed unit, the report said, citing people aware of the developments.

The reported move by SBI comes following the presentation of the 2021-22 budget, in which the government announced incentives for aircraft leasing companies to open offices in GIFT City, which is located near Ahmedabad.

Finally, Entrackr reported that Indiagold, a lending startup set up by former Paytm executives, raised Rs 14 crore (about $1.9 million) in a seed round led by early-stage VC investor Leo Capital.

As per the report, which has cited regulatory filings, Leo Capital invested Rs 8 crore (about $1.09 million) for an 11% stake in the company. Other investors that contributed funds include Blume Founders Fund, Sequoia Scout, Kunal Shah, Amrish Rau, Kunal Bahl, Ashneer Grover, Miten Sampat, Ramakant Sharma and Sandeep Tandon.

Indiagold is also in the advanced stages of discussions to raise a Series A round of funding, the report said, citing people aware of these talks.

The company is currently working on a product that will allow customers to earn interest on their gold locker balance. These customers will get a return on the value of their gold on an annual basis while they store it with the startup.

Leave Your Comment(s)