In a clear bid to increase footprints in India’s renewable energy scene, Waaree Energies has announced the acquisition of Enel Green Power India (EGPIPL). The deal, worth INR 792 crore, catapults Waaree into a major player in India’s solar and wind energy markets.
Enel Green’s Acquisition – Unwrap the Deal
Waaree’s big move was sealed with a Share Purchase Agreement (SPA) with Enel Green Power Development S.r.l., a prominent name in Europe’s green energy sector. This happened just yesterday, on 10 January 2025. However, as with all major transactions, the deal is not finalized until the necessary formalities are completed, including regulatory approvals, lender consents, and other requisite clearances. Assuming these processes proceed without complications, Waaree is poised to significantly expand its presence in India’s renewable energy sector within the next three months
EGPIPL’s Portfolio – Waaree is Picking Up Gem
EGPIPL is bringing a hefty 640 MWAC (760 MWDC) of operational capacity in solar and wind to Waaree’s table. But that’s just the start. The company also has a massive pipeline of 2.5 GW in projects scattered across different states in India. EGPIPL operates with a bit of a twist – it keeps majority stakes but works closely with partners, which seems to have worked well for balancing growth and efficiency.
This acquisition is a game-changing business deal for Waaree:
- Diversified Revenue Streams: Waaree was pretty much all about solar until now. Following the acquisition of EGPIPL the company is involved in the wind business too, which could help smooth out the market’s ups and downs.
- Enhanced Execution Capabilities: Enel Green’s expertise in managing large-scale projects will enable Waaree to successfully address complex renewable energy initiatives.
- Ambitious IPP Growth: With EGPIPL’s project pipeline, Waaree’s dream of expanding its Independent Power Producer (IPP) business just got a massive boost.
Financial Glimpse of Enel Green’s
Here’s a quick look at EGPIPL’s financials:
- FY24: Revenue hit INR 112 crore
- FY23: It was up at INR 266 crore
- FY22: Recorded at INR 129 crore
Their joint ventures also chipped in, bringing in INR 34 crore in FY23 and a hefty INR 271 crore in FY24, showing this company’s not just about big projects but also solid financials.
Leadership’s Take
Dr. Hitesh Doshi, Chairman and Managing Director of Waaree Energies, highlights the importance of the acquisition. “This acquisition is the cornerstone of our growth strategy,” he said, underlining their mission to lead India’s green shift. Pawan Kumar Agrawal, heading Waaree’s Renewable IPP Business, added, “We’re not just expanding; we’re setting ourselves up as leaders in this sector with a mix of solar and wind energy.”
Looking Ahead
Look, this acquisition isn’t just about numbers or capacity; it’s about Waaree steering the ship towards a greener India. By merging solar and wind assets, expanding its operational base, and tapping into EGPIPL’s expertise, Waaree is not just growing; it’s leading. The renewable sector in India is moving fast, and Waaree’s just shown it’s ready to lead the charge.
Waaree Energies made its stock market debut on 28 October 2024, with an issue size of INR 4,321 crore, the stock delivered a return of 55.62%. By 10 December 2024, the stock was trading at approximately INR 2,561 per share, reflecting a total return of 70.39%.
