Decarbonization solutions firm ReNew said it has inked an agreement to sell a 300 MW solar project to India Grid Trust for $199 million.
The transaction is likely to close in accordance with PPA (power purchase agreement) conditions, a company statement said.
Approximately $8 million is expected to be additionally received as an earn-out on account of change-in-law proceeds after the first payment is realized by RSUPL (ReNew Solar Urja Private Limited).
According to the statement, ReNew has signed a share purchase agreement with India Grid Trust to sell a 300 MW solar project in Rajasthan ReNew Solar Urja Private Limited – for a total enterprise value of $199 million.
The sale reaffirms strong investor interest in assets developed by ReNew and is aligned with the company's strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities, it added.
After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately $82 million, including change-in-law proceeds for ReNew, it informed.
Kailash Vaswani, Group CFO of ReNew, said, "We are committed towards discipline in allocating capital as well as enhancing shareholder value through asset recycling. This reaffirms our ability to unlock value through the sale of assets and pursue more lucrative opportunities. We continue to see interest in the private markets for high-quality stabilized assets."
ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021.
