Inox Group to sell 260 MW wind portfolio in India

Renewable energy firm Inox Renewables Ltd has announced it has agreed to sell its operating wind power farms to wind power company Leap Green Energy Pvt, majority-owned by JPMorgan Chase & Co.

Inox Renewables, a wholly owned subsidiary of Gujarat Fluorochemicals Ltd and a part of the Inox Group, said the transaction is subject to fulfilment of “certain conditions precedent”, and is expected to be completed over the next few months.

The assets, adding up to a total of 260 MW, are located in Rajasthan, Maharashtra, Madhya Pradesh and Tamil Nadu (India).

According to sources, the transaction is valued at about US$150 million.

Deepak Asher, director and group head (corporate finance) of the Inox Group of companies, explained that the group had decided to exit the wind farm business and focus on its core business, including that of wind turbine manufacturing. Besides, the transaction will allow Gujarat Fluorochemicals to reduce debt of INR8 billion (US$120 million) that was attributable to the wind farm business.

The acquisition will increase Leap Green Energy's operating capacity to 762 MW across the four states. It plans to have a total operating capacity of 2,000 MW by 2019.

UBS was financial adviser while Khaitan and Co. was the legal adviser to the Inox Group. Law firm MD&T Partners advised Leap Green Energy and its subsidiaries.