Hinduja National Power May Acquire Kiran Energy Assets

Hinduja National Power has initiated discussions to acquire ownership of Kiran Energy, from private equity funds. PE funds Argonaut Ventures, New Silk Route (NSR) and Bessemer Venture Partners (BVP) India own nearly 80% of the Mumbai-based firm while founder Ardeshir Contractor and Alan Rosling, a former Tata Sons executive director, and a few others own the rest.

The deal size could be Rs640-1,000 crore.

Kiran Energy was founded in 2010 by Rosling, a former executive director of Tata Sons, and Contractor, a former head of KPMG’s Investment Banking business in India. Kiran Energy has built a portfolio of around 83 megawatts (MW) including a 60MW plant in Rajasthan. Kiran Energy also owns a 74% stake in a joint venture—Mahindra Solar One, where the rest is held by the Mahindra Group. The joint venture, set up in 2015, has a pipeline of solar projects totalling 50 MW.

Hinduja National Power is expanding its power generation capacity of 10,000 MW over the next 10 years at an expected investment of $10 billion across India. The total projected capacity will be a mix of thermal, hydro, nuclear and renewable energy, according to the company website.

Amplus Energy Solutions Pvt. Ltd, backed by US private equity (PE) firm I Squared Capital, is also interested in acquiring Kiran Energy given the high electricity tariffs awarded in some of the power purchase pacts signed by the Mumbai-based solar power producer.

The per unit price of solar power has dropped about 77% in the past seven years from Rs10.95 in December 2010 to Rs2.44 in May 2017 due to which Indian clean energy space will see more M&A in times to come.