Inox Clean Energy To Buy 300 MW Solar Assets For Rs 10 Billion
POWER & RENEWABLE ENERGY

Inox Clean Energy To Buy 300 MW Solar Assets For Rs 10 Billion

IPO-bound Inox Clean Energy has signed a definitive agreement to acquire a 300 MW solar power portfolio from SunSource Energy, owned by Dutch multinational SHV Energy, for about Rs 10 billion, according to people familiar with the matter.

An official announcement is expected on Monday. Sources said the acquisition would significantly expand Inox Clean Energy’s renewable portfolio and could prompt the company to file a fresh draft red herring prospectus for its planned public listing.

Earlier reports had indicated that SHV Energy appointed BNP Paribas to explore the sale of SunSource Energy’s solar assets, valuing the equity at around USD 100 million. SunSource Energy has a total portfolio exceeding 600 MW, including operational and under-development projects spread across 20 states. On January 2, reports also indicated that SHV Energy had agreed to sell around 290 MW of Indian solar assets to the INOXGFL Group.

According to a June report by CareEdge Ratings, Inox Clean Energy had an operational capacity of 157 MW at the time, comprising 107 MW of solar and 50 MW of wind capacity. The company also had around 400 MW under construction.

The development comes shortly after the INOXGFL Group announced the acquisition of Vibrant Energy from Macquarie Group for an enterprise value of USD 600 million. That transaction followed a competitive process involving bidders such as Sembcorp Industries, Torrent Power and Actis.

Sources said the SunSource acquisition will be funded through a combination of pre-IPO fundraising, internal accruals and promoter capital. Inox Clean Energy had withdrawn its earlier IPO filing for a Rs 60 billion listing and is now expected to submit a revised prospectus. The company has reportedly already secured commitments of around Rs 50 billion in pre-IPO funding.

Queries sent to Inox Clean Energy and SunSource Energy did not receive responses at the time of publication.

India’s renewable energy sector has witnessed strong merger and acquisition activity over the past year, driven by policy support for energy transition and rising investor interest. Notable transactions include the acquisition of O2 Power by JSW Neo Energy for USD 1.47 billion, Orix Corp selling its stake in Greenko Energy Holdings, and several platform-level deals involving ONGC, NTPC and global private equity players.

Industry observers expect M&A momentum in renewables to accelerate further as platforms seek scale and private capital targets discounted clean energy portfolios amid the global energy transition.

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IPO-bound Inox Clean Energy has signed a definitive agreement to acquire a 300 MW solar power portfolio from SunSource Energy, owned by Dutch multinational SHV Energy, for about Rs 10 billion, according to people familiar with the matter. An official announcement is expected on Monday. Sources said the acquisition would significantly expand Inox Clean Energy’s renewable portfolio and could prompt the company to file a fresh draft red herring prospectus for its planned public listing. Earlier reports had indicated that SHV Energy appointed BNP Paribas to explore the sale of SunSource Energy’s solar assets, valuing the equity at around USD 100 million. SunSource Energy has a total portfolio exceeding 600 MW, including operational and under-development projects spread across 20 states. On January 2, reports also indicated that SHV Energy had agreed to sell around 290 MW of Indian solar assets to the INOXGFL Group. According to a June report by CareEdge Ratings, Inox Clean Energy had an operational capacity of 157 MW at the time, comprising 107 MW of solar and 50 MW of wind capacity. The company also had around 400 MW under construction. The development comes shortly after the INOXGFL Group announced the acquisition of Vibrant Energy from Macquarie Group for an enterprise value of USD 600 million. That transaction followed a competitive process involving bidders such as Sembcorp Industries, Torrent Power and Actis. Sources said the SunSource acquisition will be funded through a combination of pre-IPO fundraising, internal accruals and promoter capital. Inox Clean Energy had withdrawn its earlier IPO filing for a Rs 60 billion listing and is now expected to submit a revised prospectus. The company has reportedly already secured commitments of around Rs 50 billion in pre-IPO funding. Queries sent to Inox Clean Energy and SunSource Energy did not receive responses at the time of publication. India’s renewable energy sector has witnessed strong merger and acquisition activity over the past year, driven by policy support for energy transition and rising investor interest. Notable transactions include the acquisition of O2 Power by JSW Neo Energy for USD 1.47 billion, Orix Corp selling its stake in Greenko Energy Holdings, and several platform-level deals involving ONGC, NTPC and global private equity players. Industry observers expect M&A momentum in renewables to accelerate further as platforms seek scale and private capital targets discounted clean energy portfolios amid the global energy transition.

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