600 megawatts (MW) of operating capacity and a further 2 gigawatts (GW) of contracted projects—1.5GW of which are currently under construction—make up Zelestra’s India portfolio.
Blackstone Eyes Zelestra India
According to two persons familiar with the situation, Mint reported that Blackstone Inc., the largest alternative asset manager in the world, is in talks to buy the Indian division of the global renewable energy business Zelestra.
Mint claims that Zelestra, which has the support of European investor EQT, has engaged JP Morgan to lead the internal project, known as Project Orange. The persons, who spoke on condition of anonymity, estimated that Zelestra India would be worth around $421 million on an enterprise basis and $184 million in equity as a result of the possible acquisition.
600 megawatts (MW) of operating capacity and a further 2 gigawatts (GW) of contractual projects—1.5 GW of which are now under construction—make up Zelestra’s India portfolio, according to Mint. By 2031, the platform wants to grow to 8.6GW.
Blackstone Expands India Investments
One of the two individuals told Mint, “Blackstone is aiming to develop a fresh platform in India and has high intentions for the renewable energy industry.”
According to Mint, Blackstone, which manages $1.2 trillion in assets worldwide, has made $50 billion in investments in Indian sectors such as private equity, data centers, real estate, healthcare, and technology. The biggest shareholder of Zelestra, EQT, oversees €273 billion in assets globally.
Zelestra Explores India Exit
The planned deal comes after Temasek and EQT left O2 Power in December of last year, when JSW Neo Energy bought the renewable company for $1.47 billion, according to Mint. According to the report, Zelestra has previously contacted Macquarie, Brookfield, JSW Group, Sembcorp Industries, and Serentica about possibly off its India division.
In an email to Mint, a Zelestra spokesman said, “We never comment on M&A business.” While Brookfield, Sembcorp, and Serentica did not reply to Mint’s questions by the time of publication, representatives for Blackstone, EQT, JSW Group, JP Morgan, and Macquarie refused to comment.
Zelestra Strengthens India Presence
According to Mint, Zelestra has been involved in India since 2015 and now manages a 29GW portfolio in 13 nations. In order to provide utilities and commercial and industrial (C&I) clients with dependable electricity, its projects feature dispatchable and firm renewable energy (FDRE) assets that combine solar, hybrid, and storage systems. According to Mint, laws that allow big customers to source electricity directly rather of relying entirely on the grid have helped India’s C&I industry attract a lot of investment interest.
Sanjeev Aggarwal, the founder and executive chairman of Hexa Climate Solutions, which has I Squared Capital as a backer, told Mint that domestic markets would be more appealing to multinational utilities right now. Nevertheless, India continues to be a market with strong growth and fundamental depth. The risk-reward relationship will rebalance and rekindle strategic interest as volatility subsides, according to Aggarwal.
India’s Renewable M&A Surge
According to Mint, India now has 245GW of installed renewable capacity, of which 116GW is from solar and 52GW is from wind. Longer-term plans call for 1,800GW by 2047 and 5,000GW by 2070, while the government wants to increase by 50GW a year to reach 500GW by 2030. According to Mint, this ambitious buildout is fueling a boom in mergers and acquisitions (M&A) within the sustainable energy sector.
According to a related development, Actis LLP is one of six selected bidders doing due diligence for Macquarie Asset Management’s renewable platform, Vibrant Energy, in a potentially $600 million purchase known as Project Notos, according to Mint. Sembcorp Industries, Torrent Power, and Inox Green Energy Services from INOXGFL Group are among the other contenders.
Anil Chalamalasetty and Mahesh Kolli, the creators of Greenko, purchased the 17.5% stake that Orix Corp. had sold in Greenko Energy Holdings, according to Mint. According to Mint, Ayala Corp.’s ACEN and UPC Renewables are considering selling a share in their planned 1GW projects in India, while ONGC NTPC Green purchased Ayana Renewable Power from NIIF.