Power transmission and renewable energy company IndiGrid has announced that it will acquire ReNew Surya Aayan and Koppal–Narendra Transmission for a total enterprise value of ₹21.08 billion (~$246 million). 

IndiGrid will acquire 100% shareholding and management control of both ReNew companies. This acquisition will be funded through a combination of equity, internal accruals, and debt.  

The cost of acquiring ReNew Surya Aayan from ReNew Solar Power will not exceed ₹13.82 billion (~$161 million). Koppal–Narendra Transmission will be acquired from ReNew Transmission Ventures at ₹7.26 billion (~$87.7 million).  

ReNew Surya Aayan, a subsidiary of ReNew Solar Power, is a 300 MW solar project in Barmer, Rajasthan. The project has been operational since March 2024 and benefits from a long-term 25-year power purchase agreement with the Solar Energy Corporation of India at a tariff of ₹2.37 (~$ 0.03)/kWh. 

Koppal–Narendra Transmission is a 276 ckm interstate transmission system project in Karnataka. Operational since October 2023, it has a transformation capacity of 2,500 MVA.  

The asset is jointly owned by ReNew Solar Power (51%) and KNI India (49%), a joint venture between Norfund and KLP. 

The acquisition is in line with IndiGrid’s investment strategy, focusing on ensuring stable distribution to unitholders by owning assets with long-term contracts. The net debt-to-AUM ratio will be ~62% post-acquisition, leaving adequate headroom for future growth.  

Commenting on the acquisition, Harsh Shah, Managing Director of IndiGrid, said both the acquired projects are high-quality operational assets that deepen Indigrid’s presence in key geographies. 

Recently, IndiGrid commissioned India’s first commercial standalone battery energy storage system (BESS) project with a 20MW/40MWh capacity at the distribution company level and a tariff approved by the electricity regulatory authority. The Kilokari BESS project was awarded to IndiGrid in October 2023 by BSES Rajdhani Power. 

The company recorded revenue of ₹7.86 billion (~$94.59 million) during the fourth quarter of the financial year 2024, representing a 31% year-over-year increase. 

It also won NTPC Vidyut Vyapar Nigam’s auction to set up a 500 MW/1000 MWh standalone BESS with Viability Gap Funding support. IndiGrid 2 was awarded 250 MW at a tariff of ₹236,999 (~$2,819)/MW/month.