Avaada Has A Bangkok Connect, As Thailand’s GPSP Buys 41.6% Stake for Rs 3400 crores

Highlights :

  • GPSP’s entry through Avaada highlights the continued interest India offers as one of the largest open markets, globally.
  • The entry of more non-chinese Asian majors as investors will be welcomed by the government too.

Leading Thailand based power utility-Global Power Synergy Public Company (GPSC) has acquired a 41.6% stake in renewable energy major Avaada Energy Private for Thai Baht 14.82 billion (Rs 33.88 billion). That makes it among the largest renewable energy deals in India, which continues to consolidate as well as attract global capital.

Deal Announcement

GPSP firm announced the deal in a filing with the Bangkok stock exchange yesterday.
GPSC subsidiary Global Renewable Synergy Company will acquire the stake in Avaada Energy .  The statement says that Avaada has a total committed capacity of approximately 3,744 megawatts (MW), of which around 1,392 (MW) are operational and the rest 2,352 MW are under construction and expected to be operational by 2021 – 2022.

India’s large expansion plans for renewable energy, especially the 450 GW target for 2030 have been cited by GPSP as one of the key attractions for entering the market through Avaada, a leading renewable energy major here, which has earlier attracted funding from multiple global lenders.

Avaada Plans

Avaada Energy founder Vineet Mittal has not commented on the deal yet. Mittal founded Avaada Energy in 2017, after the Welspun group exited the renewable energy business by selling it to the Tatas .

Avaada has a declared aim to build  a 10 GW renewable asset base worth  $ 5 billion by 2025.

The GPSP intervention makes the future very fluid, with respect to possible plans to go public, or even take further support from its new, largest investor now. Details on board presence and other rights for GPSP were not available at the time of filing this. In any case, the deal also marks a shift in focus to majors with existing assets on the ground with PPA’s in place with quality buyers like SECI and NTPC , over establishing greenfield renewable energy plants with investments.

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