Actis’ BluPine Energy, a subsidiary of London-based private equity firm Actis LLP, has recently acquired the solar power assets of Kolkata-based Atha Group for an estimated ₹2,100 crore. This acquisition includes a 404MW solar power project portfolio spread across India and is valued at approximately $100 million in equity value. The deal signifies a strategic step in enhancing BluPine’s renewable energy capabilities, contributing significantly to India’s clean energy transition. BluPine aims to build a 4GW portfolio capacity over the next 4-5 years.
Actis has committed a substantial investment of up to US$800 million in BluPine through its Energy 5 Fund, which totals US$6 billion of investable capital. This fund focuses on global energy transition opportunities, underlining Actis’ dedication to sustainable investments on a global scale.
The acquisition process involved multiple bidders, with BluPine Energy and Atha Group being advised by Kotak Investment Banking and Avendus Capital, respectively. Among the nine initial companies showing interest in Atha’s solar assets were Torrent Power, Ayana Renewable Power, Sembcorp Industries, and Actis. The final competition was between Ayana and Actis, with Actis emerging as the winning bidder.
Actis has a strong track record in the renewable energy sector, having built and operated leading Indian renewable Independent Power Producers (IPPs) such as Ostro Energy and Sprng Energy. Both of these entities were sold to strategic players, marking significant transactions in the industry.
BluPine Energy, as Actis’ third clean energy firm in India, will focus on building wind, solar, and storage capabilities to deliver clean, reliable power across India. This aligns with the company’s strategic vision in the renewable energy sector and emphasizes sustainability and positive impact.
In a separate but related deal, BluPine Investment Holdings Ltd., backed by Actis, acquired Acme Solar Holdings’ assets for an Enterprise Value (EV) of ₹1,700 Crores. This acquisition, which includes operational solar power projects with a combined capacity of about 400 megawatts across multiple Indian states, is a significant step towards expanding BluPine’s renewable energy portfolio. It reflects the growing interest in renewable energy, aligning with India’s sustainable energy goals and signaling confidence from global investors like Actis in India’s renewable energy potential.
This acquisition is set against the backdrop of the global push towards renewable energy, spurred on by the Paris Agreement of 2015. India has committed to generating 175 gigawatts of renewable energy by 2022, with a significant focus on solar energy, as part of its commitment to the Paris Agreement. The BluPine and Acme Solar deal plays into this larger narrative of transitioning to cleaner and more sustainable energy sources.
The acquisition adds approximately 400 megawatts of solar power capacity to India’s clean energy generation targets, potentially fostering job opportunities and driving technological innovations in the renewable energy sector. This move not only has business implications but also contributes to global sustainable development goals by promoting cleaner energy sources and reducing carbon emissions.