India’s renewable energy sector has seen several mergers and acquisitions in the last few years.
PTC India’s subsidiary, PTC Energy Ltd, which has around 290 megawatts (MW) of wind assets across Madhya Pradesh, Karnataka and Andhra Pradesh has initiated a formal process to find a strategic investor for its wind power business.
PTC India Ltd recently appointed KPMG to advise it on various fund-raising options and they have launched a formal process for the same.
The process is most likely to see PTC sell a major stake in the wind power business to a strategic investor that can bring in more capital to grow it, or it could also see a complete sale of the 290MW of assets.
These assets could fetch a valuation of around ₹2,000 crore.
India’s wind sector has transitioned from a feed-in tariff regime, which ensures a fixed price for wind power producers, to tariff-based competitive auctions.
PTC’s wind energy assets are from the feed-in-tariff regime and thus, their tariffs are higher than the current prices at which companies are bidding for projects, this makes them more attractive for investors.
Reference- livemint, PTC website
