Entrepreneur Vineet Mittal- controlled renewable energy establishment Avaada Energy has surfaced as the front- runner to acquire around 340 MWs of solar power means possessed by the Subhash Chandra- backed Essel Group, multiple assiduity sources with knowledge of the matter told Moneycontrol.
“ The deal is in the final stage and these means are housed in 9 SPVs ( special purpose vehicles) of Essel Infraprojects located in Maharashtra, Odisha and UP,” one of the persons cited above told Moneycontrol.
A alternate person said the deal was likely to be struck for around Rs crore to Rs crore and added that the proceeds would be used by Essel Infra to pay back its bondholders and lenders. At the holdco position, Piramal Capital & Dutch pension fund director APG Asset Management are the establishment’s bondholders while L&T Finance is the lender at the SPV position.
“ An sanctioned advertisement on the proposed sale can be anticipated shortly once internal blessings are secured. There were other suitors in the fray before but Avaada Energy which now counts a Thai energy major as it’s investor is the lead contender,” added a third person.
All the three persons above spoke to Moneycontrol on the condition ofanonymity.According to a report dated August 17, 2021 by Acuris Group, the Essel Group appointed counsels and the likes of O2 Power, a renewable energy company possessed by Temasek Effects & EQT Structure, Ayana Power and some domestic power creators had shown original interest in the sale. Trident Advisory, innovated by Vikas Dawra,ex-head (Investment Banking) and CEO, Yes Securities is the sell side counsel for the sale.
Dispatch queries were transferred to Essel Infra, Avaada Energy and Piramal Group followed by monuments but the emails were left unanswered at the time of publishing this composition. When communicated, APG Asset Management & Trident Advisory declined to note. L&T Finance couldn’t be reached for an immediate comment.
THE AVAADA ENERGY STRATEGY
In July 2021, as part of Thailand’s biggest ever investment into India, energy major PTT Group acquired41.6 per cent stake in Avaada EnergyPvt. Ltd for about$ 454 million.
Pertaining to its expansion plans in the clean energy space, Avaada Energy had said “ The investment in this platform aligns with the company’s growth strategy in renewable energy business internationally and enhances the company’s moxie in the solar power generation as well as the business collaboration in the area of the company’s renewable energy business in the future. In addition, Avaada aims to expand its renewable energy portfolio in agreement with significant growth anticipated in electricity demand in India.”
Vineet Mittal is the former protagonist of Welspun Energy and left the Welspun Group after dealing the entire1.1 GW renewable energy portfolio of Welspun Energy To Tata Power for$1.4 bn.
Back in March 2016, Piramal Enterprises Limited and APG Asset Management concertedly invested Rs 900 crores ($ 132 mn) in Essel Green Energy Private Ltd, the solar platform vehicle of Essel InfraprojectsLtd.
The last month saw two other deals struck in the infra sector. Reliance Diligence said it would acquire a 40 per cent stake in Shapoorji Pallonji group possessed Sterling and Wilson Solar Ltd in amulti-stage deal for around Rs crores. Also, IRB Structure said it would raise Rs crores from Singapore’s GIC and Spain’s Cintra by dealing 41 per cent stake.
