The Competition Commission of India (CCI) has approved the acquisition of solar energy generation assets of Adani Green Energy Ten Limited (AGE10L) by Adani Green Energy Twenty-Three Ltd (AGE23L). An official statement said these approvals are under Section 31(1) of the Competition Act, 2002.
AGE23L is a joint venture company, jointly controlled by Total Solar Singapore Limited and Adani Green Energy Limited. AGE23L (through its subsidiaries) is engaged in the business of solar power generation in the country.
The assets proposed to be acquired consist of TN Urja Private Limited, Essel Urja Private Limited, PN Renewable Energy Limited, PN Clean Energy Limited, KN Indi Vijaypura Solar Energy Private Limited and KN Bijapura Solar Energy Private Limited.
KN Muddebihal Solar Energy Private Limited, KN Sindagi Solar Energy Private Limited, Essel Bagalkot Solar Energy Private Limited and Essel Gulbarga Solar Power Private Limited are also in the list of companies to be acquired.
Adani Green Energy Ten Limited (AGE10L) is the holding company of the companies that are being acquired, the statement added
AGEL is the first Adani Group company to cross Rs 1 trillion m-cap
Adani Green is the first Gautam Adani-led Adani Group company to cross Rs 1-trillion in m-cap. Adani Ports and Special Economic Zone, the other group company, had seen its m-cap touch a record high of Rs 93,607 crore in intra-day trade on January 24, 2018.
In the past year, AGEL’s share price has rallied 1,230 percent against a 4 percent rise in the S&P BSE Sensex. AGEL is the largest solar company in the world with 12+ GW of operating, in-construction, and awarded solar parks.
The company reported a profit before tax of Rs 51.27 crore during the first quarter of FY21 ended June, as against a loss of Rs 131.24 crore during the same period in FY20. The total income of the company during Q1FY21 rose 30 percent year on year to Rs 878 from Rs 675 crore in the same period last year.
AGEL, in its statement on BSE, said the company has progressed to become the largest solar power producer in the world, having won the world’s largest solar bid of 8 Gw. “With this, we have moved closer to our goal of commissioning renewable capacity of 25 Gw by 2025,” it said.
“The growing domestic and international demand for cleaner and inexperienced technology has accelerated the green energy transition within the country and that we are ready to steer this variation. This quarter, we’ve got cemented our place within the international renewable house by winning the world’s largest solar bid and with this we’ve conquered the title of largest solar energy developer in the world by Mercom Capital,” aforesaid Gautam Adani, Chairman, AGEL.
The company is ideally positioned to deliver above-average growth attributed to the high growth potential of the renewable industry. The Indian Government has revised the target for renewable generation capacity to 450 GW by 2030 giving a boost to large-scale strategic players in the industry.
The competitive intensity remains low due to lack of large scale integrated players in the industry, cost of capital – wider pool for sources of capital at the competitive rate available to large scale integrated players and secured rights for large scale land with high solar / wind resource and transmission connectivity; thus, low viability for new and small-scale players in the sector, AGEL said in the 2019-20 annual report.