Actis Unit BluPine Buys Acme Solar Assets for EV of ₹1,700 cr

London-based private equity firm Actis Llp has announced the successful acquisition of Kolkata-based Atha Group’s 404MW solar power assets by its portfolio company, BluPine Energy. The deal, valued at around ₹2,100 crore, reinforces Actis’ commitment to driving India’s energy transition and expanding BluPine’s renewable energy capabilities.

Key Deal Details

• BluPine Energy, a subsidiary of Actis Llp, has secured the 404MWp operating pan-India solar portfolio from Atha Group for an equity value of approximately $100 million.
• The enterprise value of Atha’s solar assets in the deal stands at ₹2,100 crore.
• This strategic move aligns with BluPine’s goal to contribute significantly to India’s clean energy transition by targeting a 4GW portfolio capacity over the next 4-5 years.

Actis’ Investment Commitment

• Actis has committed to investing up to US$800 million in BluPine through its Energy 5 Fund, which represents a total of US$6 billion of investable capital.
• The focus of this fund is on global energy transition opportunities, showcasing Actis’ dedication to sustainable investments on a global scale.

Advisors and Bidding Process

• BluPine Energy and Atha Group were advised by Kotak Investment Banking and Avendus Capital, respectively.
• Nine companies, including Torrent Power, Ayana Renewable Power, Sembcorp Industries, and Actis, initially expressed interest in Atha’s solar assets.
• Ultimately, Ayana and Actis remained in the fray, with Actis emerging as the winning bidder.

Actis’ Track Record in Renewable Energy

• Actis highlights its successful track record in building and operating leading Indian renewable Independent Power Producers (IPPs) such as Ostro Energy and Sprng Energy.
• Both Ostro Energy and Sprng Energy were sold to key strategic players, becoming prominent transactions in the industry.

BluPine’s Role and Focus

• BluPine Energy, as the third clean energy firm by Actis in India, follows the company’s strategic vision in the renewable energy sector.
• BluPine will focus on building wind, solar, and storage capabilities to deliver clean, reliable power across India, emphasizing sustainability and positive impact.

Industry Context

• The acquisition comes amid a dynamic landscape of green energy deals in India, with various players like CPPIB-backed ReNew Energy Global, BP Plc, Statkraft, I Squared Capital, and others actively involved in the sector.
• The broader industry is witnessing increased interest in clean energy assets, with several high-profile transactions in progress.

Questions Related to Exams

Q1: How much is the enterprise value of Atha Group’s solar assets in the deal?

A1: The enterprise value for Atha Group’s 404MW solar assets in the acquisition is approximately ₹2,100 crore.

Q2: What is Actis’ financial commitment to BluPine Energy through its Energy 5 Fund?

A2: Actis has committed to investing up to US$800 million in BluPine through its Energy 5 Fund, representing a total of US$6 billion of investable capital.

Q3: What is BluPine Energy’s strategic focus post-acquisition?

A3: BluPine Energy, as the third clean energy firm by Actis in India, will focus on building wind, solar, and storage capabilities. The goal is to deliver clean, reliable power across India with a core emphasis on sustainability and positive impact.

Q4: How does this acquisition align with Actis’ track record in the renewable energy sector?

A4: Actis highlights its successful track record in building and operating leading Indian renewable Independent Power Producers (IPPs), citing Ostro Energy and Sprng Energy as past examples, both of which became marquee transactions in the industry.