Prime Highlights
- Aditya Birla Group has emerged as the front-runner to acquire Shell’s renewable energy platform Sprng Energy in a deal valued at over $1.7 billion.
- The acquisition would significantly strengthen Aditya Birla Renewables’ expansion plans as it targets more than 10 GW of renewable energy capacity.
Key Facts
- Sprng Energy operates solar, wind, hybrid and round-the-clock renewable power projects with over 5,000 MWp of contracted capacity.
- Aditya Birla Renewables is the clean energy platform of the Aditya Birla Group and operates a renewable energy portfolio of around 4.3 GW across India.
Background
Kumar Mangalam Birla-led Aditya Birla Group has emerged as the leading contender to acquire Shell Plc’s Indian renewable energy platform, Sprng Energy, according to industry sources familiar with the matter. The development follows the submission of binding bids, with Aditya Birla Renewables reportedly moving ahead of other interested investors.
Sources said discussions are in the final stages, although no definitive agreement has been reached. They added that competing bidders could still re-enter the process if negotiations do not result in a deal. The proposed transaction is expected to value Sprng Energy at more than $1.7 billion.
Besides the Birla Group, investment firms KKR, Actis, and a consortium of NIIF and Temasek had shown interest in acquiring the renewable energy platform. Shell stated that it is holding initial discussions with potential partners regarding Sprng Energy and indicated that it is too early to comment on the outcome.
Sprng Energy, based in Pune, operates across solar, wind, hybrid, and round-the-clock renewable power projects. The company’s actual operating capacity is bigger than 2,300 MWp, and its tied-up contracted capacity is above 5,000 MWp. Various activities conducted by the company are situated in different states, including Tamil Nadu, Madhya Pradesh, Gujarat, Rajasthan, and Karnataka.
Shell paid $1.55 billion to Actis for buying out Sprng Energy in the last half of the year 2022. The company needs to focus on its upstream operation and liquefied natural gas sales. As a result, the future of the business is being considered carefully.
Aditya Birla Renewables was producing renewable energy capacity at 4.3 GW until December 2025 with Grasim Industries as its subsidiary. The company is aiming for 10+ GW of renewable power capacity.
