Green shoots to greenbacks: Actis eyes BluPine sale

Time of India

2 days ago

New Delhi: UK-headquartered
private equity
firm
Actis
is weighing a sale of up to 100 per cent of its stake in Gurgaon-based
renewable energy
platform
BluPine Energy
in a deal that could value the company at $1.3-1.4 billion (about ₹11,138-12,000 crore), according to people familiar with the matter.
Actis has approached multiple potential buyers, including strategic investors, for exploratory talks through its advisor on exiting the company it had launched four years ago with an $800 million commitment, the people said.
If the sale goes through, it could mark Actis' third major renewable energy exit in India, following the sale of Sprng Energy to Shell for $1.55 billion in 2022 and of Ostro Energy to ReNew Power in 2018.
Early exit helps return capital faster
Actis is pursuing a full or partial exit from the company while much of its portfolio remains under construction, in order to de-risk its position and accelerate returns to investors, according to people with knowledge of the matter.
'The valuation will rise after commissioning, but even an earlier exit at a slightly lower value allows Actis to return capital faster, demonstrate performance and support its next fundraising,' said the person cited earlier.
Another industry executive said that as a financial, not strategic, investor, Actis is focused on faster capital rotation if it ensures strong returns.
As of February, BluPine Energy had a 3 GW portfolio, including 1.1 GW of operational assets and 1.9 GW under construction, according to a March report by Care Ratings. The company aims to build an overall renewable capacity of 4 GW.
Actis and BluPine Energy declined to comment.
Actis had infused $468 million into BluPine Energy by February, out of its total $800 million commitment from its Actis Energy 5 fund, according to Care Ratings.
BluPine Energy is led by Neerav Nanavaty, former India CEO of French utility Engie, who has built the platform from the ground up—initially through acquisitions, later moving to greenfield development.
Solar projects
dominate the company's 3 GW portfolio, accounting for 76 per cent of capacity, while wind and hybrid assets make up 13 per cent and 12 per cent, respectively. The average tariff for its operational portfolio is ₹3.91 per unit, per Care Ratings.
An increasing number of renewable energy platforms in India are looking for buyers, even as investor appetite has cooled compared to the previous financial year, when some large deals were closed. Gentari, the renewable energy arm of Malaysian state oil company Petronas, is seeking to sell up to 50 per cent of its India business.
It has a portfolio of 4 GW of operating assets and 4 GW under construction assets. Edelweiss Infrastructure Yield Plus is planning to sell its entire 74 per cent stake in the 1.2 GW solar platform it co-owns with Engie.
Globally, momentum behind renewables has softened. Fossil fuel companies are under less pressure to decarbonise, especially following the return of pro-fossil fuel President Donald Trump to the White House earlier this year.