CESC Subsidiary Acquires 1.4 GWp Operating Renewable Power Capacity in Major Portfolio Expansion

CESC Subsidiary Acquires 1.4 GWp Operating Renewable Power Capacity in Major Portfolio Expansion​

Purvah Green Power Private Limited (PGPPL), the renewable energy platform of CESC Limited, has entered into a Share Purchase Agreement for the acquisition of operational renewable power capacity. The transaction involves purchasing 100% of the share capital of six target companies from ReNew Solar Power Private Limited. Post-acquisition, these entities will become step-down subsidiaries of CESC Limited.

The acquired portfolio includes assets such as ReNew Hans Urja Private Limited, ReNew Solar Photovoltaic Private Limited, ReNew Wind Energy (Karnataka 3) Private Limited, ReNew Wind Energy (MP Four) Private Limited, ReNew Wind Energy (Karnataka 4) Private Limited, and ReNew Agni Power Private Limited.

The total capacity acquired amounts to approximately 1.4 GWp from these assets. The companies involved in the acquisition are detailed below:

Financial and Strategic Details of the Transaction​

The transaction involves an Enterprise Value of INR 4859 crores, excluding a contingent payment estimated at INR 230 crores, which is payable only upon additional realization of a change in law claim. The cash consideration payable on closing is set at INR 1582 crores. This amount includes a payment to the sellers for share capital amounting to INR 589 crores and an infusion of unsecured promoter debt totaling INR 993 crores, intended for repayment of existing promoter debt.

The cost of acquisition varied across the target companies:

Impact and Timeline​

The acquisition is intended to expand the renewable power footprint of CESC Limited. Following the completion of the transaction, the company's operational capacity would increase to over 1.8 GWp, bringing the total contracted/tied-up capacity to over 3 GWp (totaling 4.8 GWp).

The indicative period for completing the acquisition is set before October 31, 2026. The target companies are involved in generating and supplying power from renewable sources, and their principal objects involve project development for associated assets including transmission infrastructure.

Background on Target Entities​

The acquired entities all share a focus on Renewable Energy (Power sector). Key background details include:


The acquisition has been financed by the parent company.

CESC Stock Price Movement​

Shares of CESC Limited are edging higher to ₹164.55, recording a 0.37% gain as of 12:56 PM today. The equity trades within its intraday range after seeing 547,804 shares traded during the live market session.