Actis, UK based investor in the global emerging markets, has completed the acquisition of two solar projects in India totalling 400MW from Acme Solar Holdings Ltd.
These projects, acquired through Actis Long Life Infrastructure Fund (ALLIF), are located in Andhra Pradesh and Madhya Pradesh. The deal was signed at an enterprise value of Rs.2300 crore, said sources. It is one of the largest deals in Indian renewable sector since the Covid virus outbreak.
Global emerging market fund Actis has signed the agreement to accumulate solar power assets of Acme Cleantech Solutions, ET first reported in February. Actis outbid Canadian fund Brookfield to strike a deal with one of the largest solar power producers in India, ET reported.
In India, Actis invests through ALLIF and Actis Energy Funds.
ALLIFs investment strategy targets large operating renewable assets for the long-term, maximising yield through value creation.
“India is one among the fastest growing solar markets in the world and therefore the Government’s commitment to increasing renewable energy production continues to make attractive investment opportunities for our ALLIF and Energy funds," said Sanjiv Aggarwal, Partner of Actis. We will continue to focus on M&A and PPA auctions in India, he added.
Acme group, established in 2003 by Manoj Kumar Upadhyay, is one of the largest solar IPP in India with a diversified portfolio of 5GW spread across multiple states and with a mix of central and state utilities.
“India has a lot of potential for solar power and Acme is very well poised to tap this potential and create value for utilities and consumers by offering day time power at very low cost," said
Founder, Chairman and Managing Director of ACME Group. Asset divestment to long term investors like Actis helps unlock equity value and aid our growth plans in India, he added.
Over the last five years, overall renewable capacity in India has doubled from 32GW to 84GW driven by solar and wind. Energy demand is set to increase by 6-7 per cent per annum.
As of 31 March 2020, 35.86 per cent of India's installed electricity generation capacity is from renewable sources, generating 21.22 per cent of total utility electricity in the country.