Adani Green Energy to acquire SB Energy India, boosting its renewable energy capacity by 4.9GW

• The acquisition of SB Energy India will help Adani Green achieve its 25W renewable energy target 4 years ahead of schedule.
  
• This deal, which puts SB Energy India’s enterprise value at ₹26,000 crore ($3.5 billion), is the largest acquisition in the renewable energy sector in India.
  
• In response, the company’s shares hit the upper circuit as of 9:30 am, extending the rally over the last few days.
  

Adani Green Energy announced that it will acquire SB Energy India in a deal that values the company at ₹26,000 crore ($3.5 billion). The acquisition will help Adani Green Energy inch closer to its target of 25GW renewable energy capacity, giving it a boost of 4.9GW.

“Adani Green has signed definitive agreements for 100% acquisition of SB Energy Holdings Limited. SB Energy India is a joint venture between Japan-based SoftBank Group Corp (80%) and Bharti Group (20%) and houses 4,954 MW of renewable assets in India,” the company said in an exchange filing.

Shares of the company hit the upper circuit as of 9:30 am, on Wednesday, up by ₹60 compared to the closing price on May 18. Over the last one year, Adani Green’s share price has gone up by over 5 times, taking the company’s total market capitalisation to nearly ₹2 lakh crore as of May 19.


Adani Green had outlined its plans to achieve 25GW of renewable energy capacity by 2025, by building out its own capacities and acquiring other companies.

Now, with this acquisition, the company has almost achieved its target 4 years early – it has a total renewable energy capacity portfolio of 24.3GW right now, just 0.7GW short of its 2025 target.

1 gigawatt equals 1000 megawatts.

Adani Green has a mix of solar, wind and hybrid power projects across the country. Earlier this year, it acquired multiple renewable energy projects to its kitty, boosting its capacity by 475 megawatts.

“This acquisition is another step towards the vision we stated in January 2020, wherein we laid out our plans to become the world’s largest solar player by 2025 and thereafter the world’s largest renewable company by 2030,” said Gautam Adani, the chairman of Adani Group.

Adani Green’s current operating renewable energy capacity is 4.9GW.

SoftBank’s Chief Executive Officer, Masayoshi Son, said, “As the SoftBank Group continues the transition to a global investment holding company focused on accelerating the deployment of artificial intelligence, we believe now is the right time to bring in the Adani Group to help drive the next phase of SB Energy India’s growth.”

Bharti Enterprises, led by Sunil Bharti Mittal, was also a part of the negotiations. “I am glad that Bharti could play a constructive role in partnership with SoftBank,” Mittal added.

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