Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc, has entered into an agreement to sell 100 per cent of Solenergi Power Private Limited, to the Indian conglomerate Aditya Birla Renewables Limited. The deal which includes the Indian Sprng Energy platform, is valued at $1.8 billion. The acquisition will be financed through a combination of debt and equity infusion from Grasim and funds managed by Global Infrastructure Partners.
Upon completion, the deal will add a contracted renewable energy portfolio of about 5 GWp to Aditya Birla Renewables, comprising nearly 3.3 GWp of operational capacity and around 1.7 GWp of capacity currently under construction. The transaction is expected to close in 2026, subject to regulatory approvals and customary closing conditions.
In August 2022, Shell Overseas Investment B.V, a wholly-owned subsidiary of Shell plc, notified its 100 per cent acquisition of Solenergi Power Private Limited and the Sprng Energy group of companies from Actis Solenergi Limited. Actis established the renewable energy platform Sprng Energy in India in 2017.
REGlobal’s Views: This is one of the biggest renewable energy deals in the Indian market in the recent months. M&A and consolidation activity remain strong with quality renewable energy assets finding premium prices in the market, providing an attractive exit to sellers. Meanwhile, large Indian conglomerates like Aditya Birla are looking to massively expand their clean power portfolios to not only meet the captive power requirements of their group companies, but also to cater to larger C&I customers like data centers.