MUMBAI: Private equity firm Actis is in advance talks to acquire alternative power assets of Shapoorji Pallonji Group for about $200 million as the emerging market-focused investment firm looks to ramp up its renewable energy capacity in the country.
The transaction will be through its renewable energy platform, Spring Energy, where it has already invested close to $450 million. Actis is looking to expand the platform.
The deal is expected to include the sale of seven operational assets of SP Solar Energy and some under-construction ones with a total generation capacity of 400 MW, multiple sources with knowledge of the matter told ET. Shapoorji Pallonji has mandated Credit Suisse to run a formal process to find a buyer, sources said.
A spokesperson for Actis declined comment. An email sent to Shapoorji Pallonji did not elicit any response till press time Monday.
Founded in 2011, SP Solar Energy has seven operational assets with a total capacity of 270 MW while another asset of 130 MW is under development. Its major assets are located in Tamil Nadu, Telangana, Rajasthan, Maharashtra and Karnataka. Its biggest facilities are in Telangana with a total capacity of 144 MW.
Actis, which focuses on investments in emerging market economies, has strong interest in alternative energy assets in the country. Ostro Energy, the renewable energy platform launched by Actis in 2014, was sold to Sumant Sinha-led Renew Power Ventures for an enterprise value of ?10,800 crore ($1.66 billion), the biggest M&A deal in the renewables sector, in April this year. From 50 MW capacity, Ostro had grown to be a producer of 1.1 GW of renewable energy under Actis.