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Acme appoints EY to sell InvIT stake – EQ

Acme appoints EY to sell InvIT stake – EQ


In Short : Acme Solar, one of India’s leading solar power developers, has appointed Ernst & Young (EY) to facilitate the sale of its stake in an Infrastructure Investment Trust (InvIT). This move is part of Acme’s strategic initiatives to unlock value and raise funds for future projects. InvITs have become popular investment vehicles in India’s infrastructure sector, providing an avenue for developers to monetize their operational assets and attract long-term institutional investors. Acme’s decision to sell its stake through EY reflects the company’s focus on optimizing its portfolio and capitalizing on the growing investor interest in renewable energy assets.

In Detail : Acme Group has ordered EY to sell up to 51% stake in its proposed infrastructure investment trust (InvIT) for about $1.3 billion (about Rs 10,800 crore), said two people familiar with the development. Could be one of the deals. ,

Acme Solar InvIT will be privately listed and sponsored by Acme, India’s largest pure-play solar platform, and incoming investors. The InvIT will have 1.8 gigawatts (GW) of operational solar assets. InvITs manage income generating infrastructure assets, typically providing investors with regular yields and a liquid way to invest in infrastructure projects.

“Initial talks are ongoing with select investors,” said one of the two people cited above, requesting anonymity.

An EY spokesperson declined to comment, while questions emailed to an Acme Group spokesperson remained unanswered at press time.

Founded in 2003 by Manoj Kumar Upadhyay, Acme Solar has 8.5GW of operational and small-development projects. The company is trying to raise funds and had earlier given a formal order to Rothschild & Co to raise equity of $500 million by selling stake in Acme Cleantech Solutions Pvt Ltd. Ltd Acme Solar was also previously looking to sell 4.84GW of solar projects, with Cantor Fitzgerald (Hong Kong) Capital Markets Ltd running the sale process.

India has emerged as a preferred green energy investment destination given the number of deals underway, Mint reports. According to Invest India, there is currently an investment opportunity of about $216 billion in the renewable energy sector in India. The data showed that 467 renewable energy projects are underway with 150 promoters in 230 districts of the country.

India’s renewable energy capacity is 179GW, with plans to add 50GW annually to reach 500GW renewable capacity by 2030. As a result, the demand for solar modules has increased, accounting for more than 60% of the total project cost. , With India importing solar photovoltaic cells, panels and modules worth $3 billion in FY2012, the government has come up with a production-linked incentive scheme for polysilicon manufacturing and aims to have 100GW domestic solar module manufacturing capacity.

Also, there is huge interest in green hydrogen in the country with 5.8 million tonnes of green ammonia capacity. Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer, which can be powered by electricity from renewable energy sources such as wind and solar. As part of its green hydrogen plan, India wants to encourage green hydrogen exports to Japan, South Korea and Europe, and to promote green hydrogen through subsidized green electricity, an inter-state transmission tariff waiver, renewable energy parks and Land is allowed in mega manufacturing areas. Hydrogen and green ammonia.

Acme, on its part, has ambitious plans for India and has signed an agreement with the Karnataka government to invest Rs 52,000 crore to set up a green hydrogen and green ammonia project. The company is also setting up a large green hydrogen and green ammonia project in a special economic zone in Duqm, Oman, which will require an investment of about $6 billion. Acme Solar has entered into a 50:50 joint venture with Norwegian energy firm Equinor-backed Scatec ASA to design, develop, construct and operate the facility. This plant will supply emission free fuel to Europe and Asia.

Anand Gupta Editor - EQ Int'l Media Network