ReNew has signed a share purchase agreement with India Grid Trust to sell a 300 MW solar project in Rajasthan, ReNew Solar Urja Private Limited (RSUPL), for a total enterprise value of USD199 million.
The transaction is expected to close in accordance with power purchase agreement (PPA) conditions. Approximately USD8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds, after the first payment is realised by RSUPL. The project has a 25 year PPA with Solar Energy Corporation of India Limited (SECI) at a fixed tariff of Rs 2.71 per unit. The project has been operational and revenue generating for the past two years. In 2022-23, the solar project delivered a net plant load factor of 27.42 per cent. The sale reaffirms strong investor interest in assets developed by ReNew and is aligned with the company’s strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities. After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately USD82 million, including change-in-law proceeds for ReNew.