Acme Solar Holdings Ltd is looking to sell 4.84 gigawatts (GW) of solar projects, three people aware of the development said, in a deal that may rank among the country’s biggest green energy transactions.
Cantor Fitzgerald (Hong Kong) Capital Markets Ltd is running the sale process for Acme, which has the largest portfolio of solar assets, the people said on condition of anonymity. The development comes amid revival of deal activity in the green energy space in India, home to the world’s largest clean energy programme.
“Cantor Fitzgerald has been mandated to advise on the sale of a 4.84GWp portfolio of operating and under-construction solar assets in India (Project Wiley),” the sale process documents reviewed by Mint said.
“Portfolio consists of 4.84GW of solar assets spread over 12 states, with 25-year PPAs in place at a ₹3.55/kWh weighted average tariff,” the sale process documents added.
The sale of assets codenamed Project Wiley follows Acme’s previous plan to set up an infrastructure investment trust (InvIT) and launch an initial public offering.
“At 2.21GWp of operational capacity, and a further 2.63GWp of in-construction capacity, the transaction perimeter represents one of the largest solar positions in India, and provides the opportunity for an acquirer to become a significant player in the market through a single acquisition,” the sale documents said.
“Acme Solar is perhaps the last of entirely promoter-owned large green energy firm left in India of this size,” said a person in the know, seeking anonymity.
“The first phase of the process may be launched on 21 September, with the non-binding offers to be made by 19 October. The binding offer may be made by mid-December,” the second person added.
An Acme Solar spokesperson in an emailed response said the “information is not correct. Our core strength is developing and constructing high-quality solar assets, and we will continue to do so. We don’t intend to sell any of our under-construction assets. Of course, as a part of our capital-raise strategy, we will either churn operating assets or raise capital at the platform level. We would strongly advise you not to publish anything else as it will be purely speculative.”
Queries emailed to Cantor Fitzgerald on 17 September remained unanswered.
“The portfolio is expected to generate ~ ₹1,600 crore Ebitda in FY21 at a margin of 93%, representing 21% y-o-y growth in Ebitda,” the sale documents said. Ebitda is earnings before interest, tax, depreciation and amortization.