New Delhi, Aug. 10 -- Purvah Green Power Pvt Ltd, the renewable energy platform of power utility CESC Ltd, has agreed to acquire a 1.4-gigawatt (GWp) operational solar portfolio from ReNew Solar Power Pvt Ltd for an enterprise value of Rs 4,859 crore ($510 million).
The transaction will involve Purvah acquiring a 100% equity stake in six special purpose vehicles (SPVs) that house operating solar assets across Rajasthan and Karnataka, according to a stock exchange filing on Monday.
The target entities include ReNew Hans Urja, ReNew Solar Photovoltaic, ReNew Wind Energy (Karnataka 3), ReNew Wind Energy (MP Four), ReNew Wind Energy (Karnataka 4), and ReNew Agni Power. Together, these assets have an aggregate installed capacity of 1,411.48 MW.
More than 90% of the capacity being acquired is contracted under long-term power purchase agreements (PPAs) with state-run Solar Energy Corporation of India (SECI).
The transaction, funded by parent company CESC (RP-Sanjiv Goenka Group's flagship power distribution utility), includes an upfront cash consideration of Rs 1,582 crore at closing. This comprises Rs 589 crore for the equity stake and Rs 993 crore in unsecured promoter debt to refinance existing loans, along with net current assets of Rs 94 crore. An additional contingent payment estimated at Rs 230 crore may be made, subject to realisations from pending change-in-law claims.
The acquisition is targeted to close on or before October 31, 2026, and does not require regulatory or governmental approvals.
"This acquisition marks a significant acceleration of our renewable energy journey. It gives us immediate operating scale, complements our strong pipeline of contracted capacity, and meaningfully brings forward the growth of the platform," said Shashwat Goenka, vice chairman of the RP-Sanjiv Goenka (RPSG) Group.
The deal marks a strategic pivot for Purvah Green Power, which was incorporated in 2023, from purely greenfield asset development toward acquiring operating cash-generating assets.
Following the acquisition, Purvah's total contracted renewable portfolio will expand to 4.8 GWp from 3.4 GWp, boosting its operational capacity to 1.8 GWp alongside 3 GWp of under-construction projects and 2.2 GWh of battery energy storage capacity under implementation.
The expansion aligns with the RPSG Group's broader goal of building a 10 GW renewable energy platform over the next few years. CESC currently serves around 4.4 million consumers across its distribution licenses.
Published by HT Digital Content Services with permission from VC Circle.