KKR-backed Virescent in final talks to acquire solar assets from Jakson

Global investment firm KKR-backed Virescent Renewable Energy Trust is in advanced stages of discussion to acquire 100MW solar assets from Jakson Group.

The 100MW portfolio comprises three operational solar power projects in Uttar Pradesh and Rajasthan and has a power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam Ltd and Uttar Pradesh Power Corporation for 25 years.

Headquartered in Mumbai, Virescent was established to acquire operating assets and leverage investment opportunities in the fast-growing renewable energy sector.

Virescent is the only infrastructure trust (InvIT) in India in the renewable energy space, it said in a statement.

Virescent completed the acquisition of one of the three projects -- 12.4 MW project at Lalitpur -- earlier this month.

Jakson Group owns and operates around 200MW of solar portfolio across four projects. It had recently announced the commissioning of a 70MW project in Assam.

It recently announced its new venture Jakson Green Pvt Ltd (JGPL) which will focus on green energy.

"With the conclusion of this transaction, VRET (Virescent) will come closer to its aim of achieving a 1.5GW portfolio of assets in the initial phase of its growth over the next two-three years.

"Virescent will expand its diversified portfolio of operational renewable energy assets by identifying investment opportunities that have stable cash flows stemming from long-term contracts with state and central government-owned power utilities across India," he added.

Earlier, Virescent had acquired assets from Shapoorji, Focal Sindicatum and Godawari Power, and Ispat. The Jakson acquisition would take Virescent's total operational solar capacity to 600MW.

The AUM (asset under management) of Virescent as of March 31, 2022, stands at around Rs 3,850 crore which will go to Rs 4,250 crore with Jakson acquisition.