Adani Green Energy, the renewable energy arm of Adani Group, has announced that it has signed an agreement to acquire 205 MW of solar assets from Essel Group.

The projects which are located in Punjab, Karnataka, and Uttar Pradesh have been acquired from Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL). This marks the first acquisition of operating solar projects by Adani. The acquisition of these assets is at an enterprise valuation of approximately ₹13 billion (~$181 million). The existing long-term funding is expected to continue for the assets.

According to Adani, all projects are contracted under long term power purchase agreements with a life of around 22 years.

The closing of the transaction is subject to customary approvals and conditions.

Jayant Parimal, CEO of Adani Green Energy Ltd., said, “The acquisition of 205 MW of operating solar assets strengthens Adani Green Energy’s position as one of India’s premier renewable power producers, with a total portfolio of ~5.5 GW, of which ~2.5 GW is operational, and the remaining is to be operationalized over the next two years. This is our first brownfield acquisition of operating assets. It expands our footprint in states where we already have a presence, and with our strong operational expertise, will deliver significant value for our shareholders. We remain focused on opportunities that help us create value for shareholders, as well as facilitate the growth of environment-friendly green power in India.”

Adani Green recently announced its financial report for the first quarter of the financial year (FY) 2020, ending June 30, 2019. In the quarter, the company’s total revenue stood at ₹6.61 billion (~$ 92.1 million), an increase of 40% year on year. The company announced a revenue of ₹5.54 billion (~$ 77.26 million) from power generation for Q1 of FY 2020, an increase of 17% year-over-year (YoY).

Previously, Adani Renewable Energy, a subsidiary of Adani Green Energy Limited commissioned the remaining 100 MW of solar power projects in Rajasthan. The first 100 MW capacity of the same project was commissioned on August 2, 2019.

There have been quite a few acquisition news in the industry lately.

Recently, Orix announced that it will acquire 51% stake in seven wind power generating subsidiaries which it jointly owns with Infrastructure Leasing & Financial Services Wind Energy Ltd (IWEL).

In April 2019, Suzlon Energy Limited announced that it will sell two of its solar subsidiaries to Ostro Energy, a wholly-owned subsidiary of independent power producer, ReNew Power.