Grasim Industries Ltd. is making one of India's biggest renewable energy acquisitions, with its wholly owned subsidiary Aditya Birla Renewables Ltd. agreeing to acquire Solenergi Power Pvt. Ltd. (formerly Sprng Energy) from Shell in a Rs 17,200 crore transaction, prompting brokerages to maintain a bullish stance on the stock.
The acquisition will nearly double Aditya Birla Renewables' portfolio to 9.3 GW from 4.4 GW, immediately placing it among India's largest renewable energy platforms. The portfolio includes 3.3 GW of operational assets and another 1.7 GW under construction or already contracted, significantly accelerating the company's expansion plans.
Morgan Stanley maintained its 'Overweight' rating on Grasim with a target price of Rs 3,900 (nearly 25% upside), calling the acquisition a positive development for both Aditya Birla Renewables and Grasim. The brokerage said the transaction provides immediate scale, bringing the company much closer to its 10 GW target well ahead of schedule.
The brokerage added that management is now aiming to double renewable capacity again over the next few years. It also described the Sprng Energy acquisition as a timely investment aligned with India's energy security agenda, giving the Aditya Birla Group significant exposure to the country's accelerating transition towards domestically sourced renewable power.
Citi retained its 'Buy' rating with a target price of Rs 3,600 but said investors could initially focus on the impact of the acquisition on Grasim's leverage. The brokerage expects the company to strike a balance between capital allocation and scaling up its renewable business, while also raising debt to support the transaction.
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The deal has also attracted attention because of its valuation. At roughly Rs 34.4 million per MW, the acquisition is being executed at a meaningful discount to listed renewable energy companies, which currently trade at around Rs 50-90 million per MW. Analysts say Grasim is acquiring a large portfolio of operational and de-risked assets at an attractive price.
The acquisition will be financed through a combination of equity and debt. Grasim has partnered with Global Infrastructure Partners, a BlackRock-backed infrastructure investor, reducing the need for excessive borrowing and preserving financial flexibility for future expansion.
Following the acquisition, Aditya Birla Renewables will emerge as one of India's largest renewable platforms, behind leaders such as Adani Green Energy and alongside major players including NTPC Green. Analysts expect the immediate focus to shift toward integrating the acquired assets and improving operational efficiencies.
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