Torrent Power acquires 156 MW Wind Power Plants from CESC Limited

One of the largest players in the Indian power sector, Torrent Power Limited entered into a share purchase agreement for the acquisition of 100 per cent of the share capital of Surya Vidyut Limited (the SPV), a wholly-owned subsidiary of CESC Limited. The enterprise value estimated for this acquisition is about Rs 790 crore and is subject to closing price adjustments. 

Surya Vidyut operates 156 MW Wind power plants spread across the states of Gujarat, Rajasthan and Madhya Pradesh. There are Long-term Power Purchase Agreements (PPAs) for the plants with respective state power distribution companies for 25 years, with a weighted average PPA tariff of Rs 4.68/ kWh.  

At present, Torrent Power has an aggregate installed generation capacity of ~3,879 MW comprising of ~2,730 MW gas-based capacity, ~787 MW renewable capacity and ~362 MW coal-based capacity. Further, renewable power projects of ~815 MW are under development, of which LOAs have been received and PPA has been executed for projects of 515 MW. With the acquisition of 156 MW Wind Power Plants, Torrent Power's total generation capacity, including the portfolio which is under development, will reach ~4.9 GW with a renewable portfolio of more than ~1 8 GW. 

The acquisition also initiates Torrent Power’s renewable energy presence in the states of Rajasthan and Madhya Pradesh and is in line with the Company's strategy to grow and strengthen its position in the Renewable Energy sector. 

At 12.55 pm on Wednesday, the stock of Torrent Power Limited was trading at Rs 490.50, down by 0.10 per cent or Rs 0.50 per share, against a 0.08 per cent gain in the benchmark index. The 52-week high of the company was recorded at Rs 508.85 while its 52-week low is Rs 293.05 on BSE.