In a significant development in India’s renewable energy sector, Aditya Birla Renewables Limited (ABReN), the renewable energy platform of Grasim Industries Limited, part of the Aditya Birla Group, has agreed to acquire the Sprng Energy Group through the acquisition of its holding company, Solenergi Power Private Limited (SPPL), from Shell Overseas Investment B.V., a wholly owned subsidiary of Shell PLC. The transaction values the business at an enterprise value of Rs 172 billion ($1.8 billion), including debt, making it one of the largest acquisitions in India’s renewable energy sector by both enterprise value and scale.
The deal gives ABReN control of the established Sprng Energy platform, instantly doubling its renewable portfolio to 9.3 GWp without relying on greenfield development. In one move, ABReN is set to become India’s fifth-largest renewable energy company, behind Adani Green Energy, ReNew Power, Tata Power and NTPC Green Energy.
Background
SPPL, the investment holding company of Sprng Energy Private Limited and Sprng Solar Plus Private Limited (Jaisalmer SPV), was incorporated in 2016 by Actis. In August 2022, Shell acquired SPPL, along with the Sprng Energy Group, from Actis for $1.55 billion. Interestingly, when Shell decided to divest the business, Actis returned as one of the bidders alongside KKR, a NIIF-Temasek consortium, and Sembcorp. The Aditya Birla Group eventually emerged as the successful bidder.
Sprng Energy supplies solar and wind power to discoms across India through a contracted renewable energy portfolio of about 5 GWp across solar, wind, hybrid and round-the-clock renewable energy projects. Of this, around 3.3 GWp is operational, while another 1.7 GWp is under construction. These assets are spread across Gujarat, Rajasthan, Madhya Pradesh, Karnataka and Tamil Nadu. The platform also comes with a pipeline of connectivity and development assets.
The company has maintained a steady financial performance over the past three years, with consolidated turnover increasing from Rs 11.57 billion in FY 2023 to Rs 12.53 billion in FY 2025. It has long-term contracted cash flows, a base of creditworthy offtakers and a portfolio of quality assets, making it an attractive acquisition for a long-term investor.
Meanwhile, ABReN has built one of India’s largest renewable energy platforms serving the commercial and industrial (C&I) segment. It has an operating and secured portfolio of about 4.4 GWp spread across several states. Much of this capacity was developed to meet the captive renewable energy requirements of Aditya Birla Group companies, including UltraTech Cement and Hindalco. The company also has a presence in utility-scale renewable energy through partnerships with state utilities in Karnataka, Maharashtra, Odisha, Rajasthan, Telangana and Gujarat.
Through this acquisition, ABReN’s renewable energy portfolio will increase to 9.3 GWp, while avoiding years of project development and land acquisition. In addition, the transaction provides immediate access to valuable transmission connectivity and long-term power purchase agreements (PPAs). It also combines ABReN’s C&I portfolio with Sprng Energy’s utility-scale portfolio, giving the company a more diversified revenue base.
Deal insights
ABReN’s board of directors has approved the execution of a share purchase agreement (SPA) with Shell Overseas Investment B.V. to acquire 100 per cent of the equity shares and securities of SPPL. The transaction values SPPL at an enterprise value of Rs 172 billion (around $1.8 billion). It is one of the largest renewable energy transactions in India, alongside major acquisitions such as Adani Green Energy’s acquisition of SB Energy India in 2021 (around $3.5 billion) and ONGC NTPC Green Private Limited’s acquisition of Ayana Renewable Power (around $2.3 billion).
The final equity consideration payable to Shell will be determined after adjustments for debt, cash and other items specified in the SPA. As part of the agreement, ABReN will settle SPPL’s outstanding seller debt, including inter-company loans, debentures and other borrowings.
The acquisition will be funded through a combination of debt and equity infusion from Grasim Industries and funds managed by Global Infrastructure Partners (GIP), part of BlackRock. According to industry reports, the Aditya Birla Group has arranged around Rs 150 billion in acquisition financing from the State Bank of India and Axis Bank.
The transaction is expected to be completed by the end of calendar year 2026, subject to approvals from the Competition Commission of India and Central Transmission Utility of India Limited, along with the fulfilment of other customary conditions under the SPA.
With the addition of Sprng Energy, ABReN’s renewable energy portfolio will increase to 9.3 GWp, bringing it close to its earlier target of around 10 GWp ahead of schedule. Given the growing demand from manufacturing industries, data centres and corporate decarbonisation initiatives, the company is scaling up further. Commenting on the acquisition, Kumar Mangalam Birla, Chairman, Aditya Birla Group, said, “This acquisition brings together two highly complementary platforms and marks an important milestone in ABReN’s evolution. Together, we will have a diversified portfolio and a deep development pipeline that puts us on course to scale to 20 GWp+ in the coming years. More importantly, it positions us to participate meaningfully in one of the largest energy transformations under way anywhere in the world.”
For Shell, the divestment comes as the company continues to reduce its exposure to renewable power generation and redirect capital towards oil and gas businesses. Commenting on the transaction, Machteld de Haan, President, Downstream, Renewables and Energy Solutions at Shell, said, “This agreement reflects Shell’s continued focus on adjusting the portfolio in our power business. We are high-grading our power portfolio and recycling capital in service of our asset-backed trading strategy outlined in Capital Markets Day 2025. This is another step in building a more focused, competitive and resilient business, while improving returns year on year towards 2030.” The sale is consistent with Shell’s broader strategy of becoming more selective in its power investments and focusing on areas aligned with its long-term priorities.
Outlook
The acquisition points to several broader shifts underway in the renewable energy sector. Global energy companies are becoming more selective about their renewable energy investments and are reallocating capital to core businesses and priority geographies. BP and Equinor have already scaled back renewable investments to strengthen their oil and gas operations. Shell has followed a similar path by reducing its exposure to renewable power generation and refocusing on liquefied natural gas trading and upstream operations.
The transaction also marks the increasing preference for platform acquisitions in India’s renewable energy sector. Rather than developing greenfield projects from scratch, companies are increasingly acquiring established renewable energy platforms with operational assets, projects under construction and development pipelines. Such acquisitions allow companies to add capacity at scale, while gaining access to existing infrastructure, transmission connectivity and long-term power purchase agreements. This reduces development timelines and the execution risks associated with building projects from the ground up.
Meanwhile, strong competition for Sprng Energy shows how India’s renewable energy market has evolved. The participation of global infrastructure investors such as GIP also suggests that large-scale renewable energy platforms in India continue to attract substantial institutional capital. Such investments will remain important as the country targets significant renewable capacity additions over the coming years.
Khushi Rohatgi
