Tata Power’s inorganic move to build renewable portfolio

Tata Power’s subsidiary Tata Power Renewable Energy (TPREL) is going to acquire renewable energy company Welspun Renewables Energy for Rs 9249 crore, the company’s largest acquisition in renewable space in the country. Its renewable energy unit Tata Power Renewable Energy (TPREL) has signed an agreement to acquire Welspun Renewables Energy.

Tata Power’s acquisition will enable company to expand its renewables energy portfolio. The company will complete the acquisition within two months. The transaction of the acquisition will be in the form of cash. Tata Power can enhance the value of these assets with its operational experience and financial optimization.

Welspun Renewables Energy is engaged in the business of power generation in renewable sector. The company’s power generation projects of about 300 MW are in various stages of development. It operates about 840 MW of renewable power projects across India. Welspun Renewables Energy’s consolidated revenue stands at Rs 768 crore in FY16.

TPREL currently operates 294 MW of renewable power capacity and about 400 MW of solar and wind projects are under implementation. After completion of transaction the company’s capacity will increase to 2.3 GW.

The share price of Tata Power has increased by 2.57 per cent on bourses in early trades; and is trading at Rs 75.65 on an intraday basis. The share price of Welspun Enterprises has risen by 10.59 per cent and is trading at Rs 62.6 on an intraday basis.