Torrent Power Bags 25 MW Solar Portfolio in Gujarat

In a recent announcement, Torrent Power said that the company has entered into a share purchase agreement with Blue Daimond Properties and Balrampur Chini Mills for the acquisition of 100 per cent equity share capital of Visual Percept Solar Project, which operates a solar plant of 25 MW capacity in Gujarat.

Subject to closing price adjustments, the enterprise value estimated for the acquisition is Rs 163 crore. Torrent has  a long-term Power Purchase Agreement (PPA) for the project with Gujarat Urja Vikas Nigam (GUVN) for a period of 25 years. Torrent Power also told the press that the acquisition is further subject to customary conditions for transaction closure.

Currently, equity shares in Visual Percept Solar Projects Private Limited are held by Blue Daimond Properties, which has 55% stake, and Balrampur Chini Mills that has the remaining 45% shares.

Torrent Power is one of the leading players in the solar power industry. The company has an aggregate installed generation capacity of about 3.9 GW at present. This installed capacity consists largely of clean generation sources such as gas – up to the tune of 2.7 GW – and renewables that are close to 1GW.

Torrent Power is an integrated power utility of the Torrent Group and is said to enjoy a presence across the entire value chain of generation, transmission and distribution of renewable power.

Additionally, the company has a capacity of 0.7 GW of renewable energy plants that are either under development or advanced stages of acquisition. Torrent Power distributes electricity in some of Gujarat's major cities like Ahmedabad, state capital Gandhinagar, Surat, Dahej SEZ and Dholera SIR. In Uttar Pradesh, it distributes power in Agra.

The company has similar operations in Maharashtra’s Bhiwandi, Shil, Kalwa and Mumbra. Torrent power is reportedly considering taking over the electricity distribution business in the union territories of Dadra and Nagar Haveli, and Daman and Diu.