Acme looks to sell 4.84GW  solar plants

Acme Solar Holdings Ltd is seeking to promote 4.84 gigawatts (GW) of photo voltaic tasks, three individuals conscious of the event stated, in a deal which will rank among the many nation’s largest inexperienced vitality transactions.

Cantor Fitzgerald (Hong Kong) Capital Markets Ltd is operating the sale course of for Acme, which has the biggest portfolio of photo voltaic property, the individuals stated on situation of anonymity. The improvement comes amid revival of deal exercise within the inexperienced vitality area in India, dwelling to the world’s largest clear vitality 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 course of paperwork reviewed by Mint stated.

“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 course of paperwork added.

The sale of property codenamed Project Wiley follows Acme’s earlier plan to arrange an infrastructure funding belief (InvIT) and launch an preliminary public providing.

“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 paperwork stated. “Acme Solar is perhaps the last of entirely promoter-owned large green energy firm left in India of this size,” stated an individual within the know, looking for anonymity.

“The first phase of the process may be launched on September 21, with the non-binding offers to be made by October 19. The binding offer may be made by mid-December,” the second particular person added.

An Acme Solar spokesperson in an emailed response stated 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 September 17 remained unanswered. “The portfolio is expected to generate Rs 1,600 crore Ebitda in FY21 at a margin of 93%, representing 21% y-o-y growth in Ebitda,” the sale paperwork stated. Ebitda is earnings earlier than curiosity, tax, depreciation and amortisation.