ReNew Power sells rooftop portfolio for Rs 672 crore, sets sights on larger projects

NASDAQ-listed ReNew Power will exit the rooftop solar business by selling its portfolio of 117 megawatts (mw) to Fourth Partner Energy for an enterprise value of Rs 672 crore, the Sumant Sinha-led company said on January 27.

The company said that the sale of business is a part of the company’s increased focus on projects with higher-return and large scale opportunities.

“Strong capital discipline is a core value for ReNew. 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,” Sumant Sinha, chairman and chief executive officer of ReNew Power, was quoted as saying in the press release.

Fourth Partner is an investee company of TPG and Norfund.
The cash proceeds from the deal stands at Rs 535 crore, after accounting for an outstanding debt of Rs 137 crore. “ReNew expects to record a gain from the deal,” the company said.
After the sale, ReNew Power’s run-rate-adjusted earnings before interest, tax, depreciation and amortisation will reduce by Rs 70-72 crore.