Eyeing opportunities in the utility scale market, Indian renewable energy independent power producer (IPP) ReNew Power has offloaded its 138 MW DC/117 MW AC rooftop solar portfolio. It has sold it to rooftop solar company Fourth Partner Energy for INR 6.72 billion ($89.9 million).
The management said it will be able to fully leverage its competitive advantages of scale while creating greater shareholder value through capital reallocation into higher-return opportunities and being more efficient by focusing more on large utility scale projects.
"This sale illustrates the value that can be released through sale of assets and enhances our ability to capitalize on higher-return opportunities in the near term," said company's Chairman and CEO Sumant Sinha.
With 10.3 GW of wind, solar, hydro and distributed solar energy projects accounting for 10.3 GW total commissioned and committed capacity as of December 31, 2021, ReNew Power has been trading on NASDAQ since August 2021 swhen it completed a transaction with RMG acquisition (see India's ReNew Power Starts Trading On NASDAQ).
ReNew said it expects to record a gain from the deal as after accounting for outstanding debt of INR 1.37 billion ($18.3 million), the cash proceeds amount to INR 5.35 billion ($71.6 million). It expects to reduce its run-rate-adjusted EBITDA for the total portfolio, with this sale, by INR 700 million to INR 720 million ($9.35 million to $9.55 million).
The buyer of this portfolio, Fourth Partner Energy is an investee company of Norfund and TPG and also has funding from the UK's CDC Group (see India PV News Snippets: Gautam, CDC Group, ReNew Power).