Torrent Power Limited, the integrated power utility of the diversified Torrent Group, has entered into a share purchase agreement (SPA) with Blue Daimond Properties Private Limited and Balrampur Chini Mills Limited, the sellers, to acquire 100 percent equity share capital of Visual Percept Solar Projects Private Limited, the SPV, for Rs 163 crore.
Notably, 100 percent of the equity shares in Visual Percept Solar Projects Private Limited -- which operates a 25 MW solar power plant in Gujarat -- are currently held by Blue Daimond Properties Pvt Ltd (55 percent) and Balrampur Chini Mills Limited (45 percent).
Torrent Power’s long-term power purchase agreement (PPA) for the project is with the Gujarat Urja Vikas Nigam Limited (GUVNL) for a period of 25 years at an estimated enterprise value of Rs 163 crore, subject to closing price adjustments. The acquisition is further subject to customary conditions for transaction closure, it said in a statement.
Torrent Power has group revenues of Rs 20,500 crore ($2.7 billion) and a market cap of Rs 82,000 crore ($11 billion). It is one of the largest companies in India’s power sector with a presence across the entire power value chain of generation, transmission, and distribution.
The company "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.”
Torrent Power is also one of the largest players in power distribution and 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, and Agra in Uttar Pradesh, the company stated.
It is currently in the process of taking over electricity distribution operations in the union territories of Dadra and Nagar HaveIi and Daman and Diu, the statement added.
In August 2021, Torrent Power had entered into a securities purchase agreement with Lightsource India and Lightsource Renewable Energy (India) for the acquisition of 100 percent share capital and securities of LREHL Renewables India (the SPV), which operates a 50 MW solar power plant in Maharashtra.