Actis in Discussion for Blupine Energy Sale, Aims for $1.5 Billion Valuation
Actis Eyes $1.5 Billion-$1.8 Billion Sale for Indian Renewable Energy Platform
Global private equity firm Actis has initiated discussions with investment banks to commence the sale of its Indian renewable energy platform, BluPine Energy. The infrastructure and energy-focused investor is likely to seek an enterprise valuation of around $1.5 billion to $1.8 billion (Rs 13,800 crore to Rs 16,600 crore) for the renewable energy portfolio.
Actis has reportedly held pitches with over a dozen investment banks in recent times and is expected to appoint a banker to manage the sale process soon. The formal sale process is anticipated to be launched in the second half of the calendar year. The sale is expected to be one of the largest renewable energy portfolio transactions in the market this year, alongside Shell's Sprng Energy, which is already at an advanced stage.
BluPine Energy, owned by Actis, boasts a portfolio of 3.9 gigawatts (GW) of solar and wind assets, with 1.49 GW of capacity currently operational and another 2.45 GW capacity under construction and development. The platform has assets spread across 10 states in India. This marks the third renewable energy platform set up by Actis in the country, following its successful green energy investments.
Actis has a proven track record of developing and selling renewable power companies in India. In 2022, the firm sold the Sprng Energy platform to Shell for $1.55 billion, which was set up in 2017. Interestingly, Actis has also expressed interest in acquiring Sprng back from Shell, as reported by The Economic Times on February 10. In a similar deal, Actis sold its first Indian renewable energy company, Ostro, to ReNew Power in 2018 for Rs 10,000 crore (approximately $1.5 billion at that time).
Renewable Energy Deals Comparison
| Company | Asset Size | Deal Value |
|---|---|---|
| Global Infrastructure Partners | 1.1 GW | Not disclosed |
| Inox Clean Energy | 1,337 MW | Rs 5,000 crore |
| SHV Energy | 290 MW | Not disclosed |
Apart from Shell's proposed sale of Sprng Energy, other notable renewable energy deals include Blackrock-owned Global Infrastructure Partner's sale of its 1.1 GW of renewable energy assets in India, Inox Clean Energy's acquisition of Macquarie's Vibrant Energy, and SHV Energy's sale of its Indian solar portfolio to Inox Clean Energy.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Actis is planning to sell its Indian renewable energy platform, BluPine Energy, with a valuation of $1.5 billion-$1.8 billion.
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