Torrent Power acquires 25 MW Solar Power Plant in Gujarat

11 Feb 2022 , 10:36 AM

Torrent Power Limited has entered into a Share Purchase Agreement (SPA) with Blue Daimond Properties Private Limited and Balrampur Chini Mills Limited (the Sellers) for the acquisition of 100% Equity Share Capital of Visual Percept Solar Projects Private Limited (the SPV).

The SPV operates 25 MW Solar power in the state of Gujarat. The long-term Power Purchase Agreement (PPA) for the Project is with Gujarat Urja Vikas Nigam l.imited (GUVNL) for a period of 25 years. Enterprise Value estimated for this acquisition is Rs163 crore, subject to Closing Price Adjustments if any. The acquisition is further subject to customary conditions for transaction closure.

At around 10.40 am, Torrent Power Ltd was trading at Rs507.10 per piece up by Rs0.45 or 0.09% from its previous closing of Rs506.65 per piece on the BSE.

Torrent Power, the integrated power utility of the diversified Torrent Group with group revenues of Rs20,500 crore (approx. USD 2.7 billion) and Market Cap of Rs82,000 crore (approx. USD 11 billion), is one of the largest companies in the Country’s power sector with presence across the entire power value chain of generation, transmission and distribution.

Torrent Power currently has an aggregate installed generation capacity of about 3.9 GW, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (0.8 GW). It also has a capacity of 0.7 GW of renewable energy plants under advanced stage of acquisition or under development, with which its renewable portfolio will increase to more than 1.5 GW and its total capacity will increase to about 4.6 GW.

The Company is also one of the largest players in power distribution and efficiently distributes nearly 14.5 billion units to over 3.7 million customers in the cities of Ahmedabad, Gandhinagar, Surat, Dahej SEZ and Dholera SIR in Gujarat; Bhiwandi, Shil, Mumbra and Kalwa in Maharashtra; Agra in Uttar Pradesh and is in the process of taking over electricity distribution operations in the UT of Dadra and Nagar Have Ii and Daman and Diu.

100% of the Equity Shares in Visual Percept Solar Projects Private Limited are currently held by Blue Daimond Properties Private Limited (55%) and Balrampur Chini Mills Limited (45%).