Indian developer ReNew has signed a share purchase agreement with India Grid Trust to sell a 300MW solar project in Rajasthan for a total enterprise value of US$199m.
ReNew Solar Urja, located in Jaisalmer, Rajasthan, was commissioned in December 2021.
The project has a 25-year PPA with Solar Energy Corporation of India (SECI) at a fixed tariff of INR 2.71 per unit.
The project has been operational and revenue generating for the past two years, ReNew said.
In 2022-23, the solar project delivered a net PLF of 27.42%.
The sale of ReNew Solar Urja Private Limited (RSUPL) is expected to close in accordance with PPA conditions.
Approximately US$8m 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.
According to ReNew, the sale reaffirms strong investor interest in assets it develops and is aligned with the company’s strategy to enhance shareholder value through capital recycling and investment into higher-return opportunities.
After the transfer of the outstanding debt to the buyer, the transaction will result in a cash inflow of approximately US$82m, including change-in-law proceeds for ReNew.
Kailash Vaswani, group chief financial officer 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.”