Global Infrastructure Partners (GIP) has concluded discussions to buy RattanIndia’s 350MW solar portfolio for an enterprise value of about INR 16.64bn (USD 250m), two people familiar with the matter said.
The deal is likely to be announced next month, they said, with one adding that the transaction will double GIP’s India solar portfolio to 700MW. The RattanIndia deal will include 150MW that is under construction, which the Indian company will continue to develop.
The valuation works out to INR 50m per megawatt.
New York-headquartered GIP entered India in April 2018 by acquiring the infrastructure asset management business of IDFC Alternatives. The portfolio had two funds under management – India Infrastructure Fund I and India Infrastructure Fund II. The first raised USD 927m in 2009, while the second raised USD 900m in 2014.
The two funds invested in 32 infrastructure companies across segments such as roads, power, telecom towers, and clean energy, IDFC said when it was acquired by GIP.
According to India’s annual economic survey for 2019 tabled in parliament on 4 July, renewables’ share of total power generation increased to 10% in 2018-19 from 6% in 2014-15. Cumulative renewables power installed capacity (excluding hydropower above 25MW) more than doubled to 78GW from 35GW in the same period.
In addition, around 27GW renewables power capacity is under installation and over 38GW going through bidding. The target is to achieve an installed capacity of renewables-based power of 175GW by the year 2022.
RattanIndia did not respond to an email requesting comment while GIP said it does not have any comment to offer.