Power infrastructure investment trust IndiGrid has signed a share purchase agreement to acquire ReNew’s 300 MW (AC) solar project in Rajasthan at an enterprise valuation of ₹15.5 billion (~$186.5 million). The valuation, inclusive of working net capital and cash, stands at ₹16.5 billion ($198.58 million).

The asset, ReNew Solar Urja (RSUPL) , located in Jaisalmer, has been operational since December 2021. The project has a 25-year power purchase agreement with Solar Energy Corporation of India (SECI) at ₹2.71 (~$0.033)/kWh.

The project has been operational and revenue-generating for the past two years, and in 2022-23, the solar project delivered a net plant load factor of 27.42%.

“In view of India’s focus on energy transition, we are confident of the strategic value of renewable energy projects in the coming decades. RSUPL is a high-quality solar generation asset located in one of the highest irradiation regions of India with a reasonable operating track record. In line with our strategic focus, RSUPL will help us ensure sustainable growth of our portfolio and aid in long-term cash-flow addition,” said Harsh Shah, Chief Executive Officer and Whole Time Director of IndiGrid.

In line with the terms of the definitive agreements and the PPA, along with the lock-in restrictions therein, IndiGrid will acquire 100% shareholding and management control of RSUPL.

Kailash Vaswani, Group CFO of ReNew, said, “We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities.”

After the transfer of the outstanding debt to the buyer, the transaction is expected to bring in a cash inflow of approximately $82 million, including change-in-law proceeds for ReNew.

Last July, ReNew signed a 50:50 joint venture agreement with clean energy solutions provider Gentari to develop solar, wind, and energy storage assets to achieve a clean power capacity target of 5 GW in India.

Earlier this month, IndiGrid secured letters of intent from REC Power Development and Consultancy for the construction of two greenfield interstate transmission projects.