Adani Green, Torrent Power, Actis, Shell in Fray for KKR’s InvIT


Adani Green, Torrent Power, Actis and Shell are just a few of the six energy companies that are looking to buy Virescent Renewable Energy Trust from KKR India, ET reported.


This InvIT is an infrastructure investment trust (InvIT), owned by KKR India with an enterprise value $550million (Rs 4.500 crore).


The trust owns 16 solar power projects across 7 states. This amounts to 538 MW. This deal could become the first Indian InvIT sale if it is successful. The contenders submitted non-binding offers to KKR and JP Morgan recently. They will continue negotiations with a smaller number of candidates for the next round and due diligence, according to the sources.


Initial assets of the trust included 9 solar power projects in Maharashtra, Gujarat, Rajasthan, Uttar Pradesh and Tamil Nadu. These projects amounted to 394 MW. The Trust later added 7 more solar power projects to its portfolio, totaling 144 MW in Rajasthan, Madhya Pradesh, and Punjab. Each of the 16 projects has long-term Power Purchase Agreements (for 25 years) with both the Central and State Government offtakers.

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One of the cited persons stated that “The sale of InviT could be complicated.” To become a co-sponsor and to acquire a majority of the InviT’s shares, the sponsor must not own more than 75%. To become a co-sponsor, the potential buyer must inform Sebi, then seek approval from other unit holders.

He said, “In the event that the minority shareholders do not agree, the potential buyer must provide an exit to them. This would increase complexity and delay the process.”

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