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Torrent Power acquires 50-MW solar plant for Rs 416 cr in Telangana

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Last Updated : Jun 14 2022 | 10:31 AM IST

The Gujarat-based integrated power utility on Monday said it has completed acquisition of a 50-megawatt (MW) solar power plant in Telangana from SkyPower Group for Rs 416 crore.

Torrent Power, pursuant to securities purchase agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited, and Sunshakti Solar Power Projects - a special purpose vehicle - has completed transaction for acquisition of 100% securities of the SPV, the company said in the release.

Enterprise Value for this acquisition is approximately Rs 416 crore, consequent to closing adjustments. It added that the long-term power purchase agreement is with Northern Power Distribution Company of Telangana for a period of 25 years at a fixed tariff of Rs 5.35 per unit, with the remaining useful life of about 20 years.

Torrent Power currently has an aggregate installed generation capacity of ~4.1 gigawatt (GW), which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0 GW). It also has a capacity of 0.5 GW of renewable energy plants under development.

With the latest acquisition, Torrent Power's total generation capacity, including under development portfolio, will reach to ~4.7 GW with renewable portfolio of more than ~1.6 GW.

Torrent Power, the integrated power utility of the diversified Torrent Group, is one of the largest companies in the country's power sector with presence across the entire power value chain of generation, transmission and distribution.

On a consolidated basis, the company reported net loss of Rs 488.04 crore in Q4 FY22 compared with net profit of Rs 396.93 crore in Q4 FY21. Net sales surged 21.4% to Rs 3,743.65 crore in Q4 FY22 over Q4 FY21.

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Shares of Torrent Power were up 0.96% to Rs 461 on the BSE.

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First Published: Jun 14 2022 | 9:57 AM IST

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