Blackstone Inc., the world's biggest alternative asset manager, is in discussions to purchase the Indian arm of multinational renewable energy company Zelestra, Mint reported, citing two people familiar with the matter.
According to Mint, Zelestra - which is backed by European investor EQT - has hired JP Morgan to steer the process, internally dubbed Project Orange. The potential deal is expected to value Zelestra India at around $184 million in equity and about $421 million on an enterprise basis, the people said on condition of anonymity.
Zelestra's India portfolio comprises 600 megawatts (MW) of operational capacity and an additional 2 gigawatts (GW) of contracted projects, of which 1.5GW is already under construction, Mint noted. The platform aims to scale up to 8.6GW by 2031.
"Blackstone has ambitious plans for India's renewable energy sector and is looking to establish a fresh platform in the country," one of the two people told Mint.
Blackstone, which oversees assets of $1.2 trillion globally, has invested $50 billion across Indian industries including real estate, data centres, healthcare, technology, and private equity, according to Mint. EQT, Zelestra's majority backer, manages €273 billion in assets worldwide.
The proposed transaction follows EQT and Temasek's exit from O2 Power last December, when JSW Neo Energy acquired the renewable firm at an enterprise valuation of $1.47 billion, Mint recalled. Zelestra had earlier approached Brookfield, JSW Group, Sembcorp Industries, Serentica, and Macquarie regarding a potential divestment of its India business, the paper added.
A Zelestra representative told Mint via email, "We never comment on M&A activity." Representatives for Blackstone, EQT, JSW Group, JP Morgan, and Macquarie declined to comment, while Brookfield, Sembcorp, and Serentica did not respond to Mint's queries by press time.
Zelestra, which operates a 29GW portfolio across 13 countries, has been active in India since 2015, Mint pointed out. Its projects include firm and dispatchable renewable energy (FDRE) assets combining storage, hybrid, and solar installations, designed to provide reliable power to utilities as well as commercial and industrial (C&I) customers. India's C&I market has drawn significant investor attention, supported by policies that let large consumers source power directly rather than rely solely on the grid, Mint said.
Sanjeev Aggarwal, founder and executive chairman of Hexa Climate Solutions (backed by I Squared Capital), told Mint that global utilities may currently find their home markets more attractive. "That said, India remains a fundamentally deep and high-growth market. Once volatility eases, the risk-reward equation will rebalance and reignite strategic interest," Aggarwal said.
India's installed renewable capacity now stands at 245GW, comprising 116GW of solar and 52GW of wind power, Mint reported. The government aims to add 50GW annually to reach 500GW by 2030, while longer-term plans target 1,800GW by 2047 and 5,000GW by 2070. This aggressive buildout is driving a surge in mergers and acquisitions in the clean energy space, according to Mint.
In a related development, Mint said that Actis LLP is among six shortlisted suitors conducting due diligence for Vibrant Energy, Macquarie Asset Management's renewable platform, in a deal estimated at $600 million and codenamed Project Notos. Others in contention include Sembcorp Industries, Torrent Power, and INOXGFL Group's Inox Green Energy Services.
Separately, Orix Corp. sold its 17.5% holding in Greenko Energy Holdings to AM Green B.V., owned by Greenko founders Anil Chalamalasetty and Mahesh Kolli, Mint said. ONGC NTPC Green acquired Ayana Renewable Power from NIIF, while Ayala Corp.'s ACEN and UPC Renewables are exploring a stake sale in their planned 1GW projects in India, according to Mint.
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