Ahmedabad based Torrent power is in early talks to procure Renew Energy’s 1.1 Gigawatt power plant for $1.2 billion dollars

According to a Mint report, Torrent Power and ReNew Energy Global are negotiating to buy green power plants with a combined capacity of 1.1 GW for $1.02 billion. The 350 and 450 Mw of solar and wind assets owned by ReNew have been offered for $450 million by the Ahmedabad-based company in a non-binding offer (NBO).

Renew Energy global in a bid to its capital recycling strategy is planning to sell its operational clean energy capacity. The proceeds from such sales will be further reinvested into building new energy assets as stated by a media report published in the month of November. However, the talka regarding the valuation of the plant and goodwill is still going on. 

For this transaction, ReNew has not appointed any sell-side banks. Between Torrent and ReNew, valuation discussions are currently taking place, a person with knowledge of the situation told Mint. 

Renew Energy is one of the youngest companies to have ventured into the business of clean energy. The company was founded in the year 2011. It has a 13.64 Gw portfolio.in the month of august 2021,The company formally merged with RMG acquisition corp II to form Renew energy global plc. It has also partnered with indian oil corp and L&T to form tripariate JV for green hydrogen 

In the month of December, the company entered into an agreement with Microsoft india to provide 150 Mw of green energy 

 Sumant Sinha, chairman and CEO of ReNew Power said that “The Partnership will help contribute towards Microsoft’s ambition of shifting to 100 percent supply of renewable energy by 2025” 

 The company also announced that it would spend Rs 30,000 crore over the next two years to expand its solar and wind power generation capabilities. Meanwhile, Torrent power has a power generation capacity of 4.16 Gw. It provides electricity to Dadra and Nagar Haveli, Daman and Diu, Ahmedabad, Gandhinagar, Surat, Dahej special economic zone, Dholera special investment region, Bhiwandi, Shil, Mumbra, Kalwa and Agra. The company have been rising tremendously as it has reported a 31% in its consolidated net profit at Rs 484.19 crore in the September quarter, mainly due to higher revenues.