In a new acquisition that pushes the envelope of renewable energy in India, Adani Green will be acquiring SB Energy India for $3.5 billion which will be the largest renewable acquisition in India. Owned by the ‘other’ Gujarati billionaire Gautam Adani, Adani Green Energy or AGEL is one of the largest firms that works in the renewable energy space, overtaking giants like Tata Power, Azure Power and more.
Statements from Gautam Adani, Softbank CEO Masayoshi Son, Bharti Group’s Sunil Mittal
In the exchange filing, Gautam Adani was quoted saying-
“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. We are well on our way to achieve our stated solar portfolio targets four years before the deadline. The quality of assets that SoftBank and the Bharti Group have built are excellent and I compliment their efforts to support India’s renewable energy transition. We are proud to take their legacy forward,”
Meanwhile Masayoshi Son, Chairman and CEO of SoftBank Group said how the company is proud of what it has accomplished and the acquisition would help push forward the next phase of SB Energy’s plan of growth in India.
“We established SB Energy India in 2015 with the goal of creating a market-leading clean energy company to help fuel India’s growth with clean and renewable sources of energy. We are immensely proud of all that we have accomplished. As SBG continues our 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,”
-the SoftBank CEO said.
Sunil Bharti Mittal, Chairman of Bharti Enterprises that owned 20% of SB Energy India was quoted saying-
“I am delighted that SB Energy has found a good home to carry on its pioneering journey of building a foremost renewable energy company in India. Adani Group has an outstanding track record of building a green energy powerhouse which will get further acceleration with the combination of SB Energy into its fold. I am glad that Bharti could play a constructive role in partnership with SoftBank.”
After the news of the acquisition broke, the shares of all Adani related firms rose. Adani Green – which has already been on a bullish rally – rose 5%, the most it has since March this year. As of 11:38 AM AGEL was trading at 1,238.60 with a 3.2% growth. Other Adani ventures are also showing green with Adani Power rising 3.4% and trading at 105.4, Adani Transmission rising 5% and trading at 1323.5.
AGEL Target Portfolio
AGEL with the acquisition of SB Energy India will now hold a capacity of generating 24.3 gigawatt of renewable energy and will possess an operating renewable capacity of another 4.9 gigawatt. As mentioned earlier, SB Energy owns renewable assets of 4,954 megawatt across 4 states in India.
It should be noted that AGEL’s target portfolio is to have 25 gigawatt of renewable power generation by 2025. This plan is in tandem with the India’s pledge of increasing the country’s renewable energy capacity by 2022 to 220 gigawatts.
AGEL target consists of building large-scale assets and is focusing majorly on increasing solar capacity (4,180 MW), 9% hybrid capacity of solar-wind, 324 MW of wind capacity. Currently, a 1,400 MW solar power asset and another 3,554 MW solar power asset is under construction.
With effects of climate change increasingly evident, our focus on renewable energy has accelerated. Acquisition of SoftBank’s & Bharti’s 5 GW RE portfolio is aligned with India’s COP 21 aspiration and our goal to be the world’s largest Renewable Energy Company by 2030. pic.twitter.com/uKAnNRItgt
— Gautam Adani (@gautam_adani) May 19, 2021