Pennar Industries Ltd (PIL), a Hyderabad-based engineering company, on Monday said its board has agreed to sell a stake in its subsidiary Pennar Renewables Pvt. Ltd to Greenko Solar Energy Pvt. Ltd, the solar energy arm of Greenko Energy Holdings.
The acquisition of Pennar Renewables is part of the growing trend of mergers and acquisitions in the Indian renewable energy sector.
Greenko itself has been an aggressive acquirer. Last year, Greenko acquired the Indian assets of US solar power firm SunEdison for $392 million. Greenko was also one of the suitors to acquire 1.1 gigawatts (GW) of wind and solar assets of Welspun Renewables. It is still looking to acquire hydro and wind power producer Bhoruka Power Corp. Ltd’s renewable energy portfolio of 310 megawatts (MW).
Apart from strategic investors such as Greenko, the sector has also seen strong M&A action driven by financial investors.