Waaree Energies share price declined by 1.5 percent on Friday. The stock could see positive moves on Monday as the company announced acquisition of Enel Green Power India for Rs 792 crore, a deal that would improve market penetration of Waaree Energies. The stock opened at Rs 2,585 and drifted towards low of Rs 2,560 before closing the trading session at Rs 2,561. Waaree Energies has announced the acquisition of Enel Green Power India Pvt Ltd (EGPIPL), a subsidiary of one of Europe’s largest renewable energy companies, for a consideration of up to Rs 792 crore. This acquisition includes EGPIPL’s 640 MWAC operational and under-development solar and wind projects, marking a strategic expansion for Waaree into the Independent Power Producer (IPP) space. The move aims to diversify Waaree’s revenue streams and enhance its execution capabilities in wind energy. The transaction, expected to close within three months, underscores Waaree’s ambition to solidify its position as a leading renewable energy player in India.

Details of the Acquisition

Agreement and Consideration
Waaree Energies signed a Share Purchase Agreement (SPA) with Enel Green Power Development S.r.l to acquire 100% equity in Enel Green Power India Pvt Ltd. The deal is valued at up to Rs 792 crore, subject to customary closing adjustments.

Portfolio Overview
EGPIPL owns a diversified portfolio of solar and wind energy assets in India, comprising approximately 640 MWAC (760 MWDC) of operational and development-stage projects. This portfolio also includes joint ownership arrangements, where EGPIPL holds the majority equity stake.

Strategic Benefits of the Acquisition

Diversification of Revenue Streams
The acquisition will enable Waaree Energies to diversify its income by tapping into wind energy projects, complementing its existing solar energy business.

Enhanced Execution Capabilities
With EGPIPL’s established expertise in solar and wind energy, Waaree will strengthen its project execution capabilities, particularly in wind energy development.

Boost to Independent Power Producer (IPP) Business
The deal positions Waaree Energies as a formidable player in the IPP sector, accelerating its growth trajectory and operational scalability.

Operational and Financial Highlights of EGPIPL

Operational Turnover

FY24: Rs 112 crore
FY23: Rs 266 crore
FY22: Rs 129 crore
The reported turnover excludes revenues from jointly owned projects, which contributed Rs 34 crore in FY23 and Rs 271 crore in FY24.
Project Ownership Structure
The operational portfolio includes projects co-owned with partners, where EGPIPL retains the majority stake, showcasing a robust collaborative business model.

Timeline and Next Steps

Expected Completion
The transaction is expected to conclude within three months, contingent upon the fulfillment of conditions outlined in the definitive agreements.

Integration into Waaree’s Operations
Post-acquisition, EGPIPL will operate as a subsidiary of Waaree Energies, seamlessly integrating into Waaree’s expanding renewable energy portfolio.

Competitive Edge and Market Implications

Leadership in Renewable Energy
This acquisition enhances Waaree Energies’ market positioning, providing a competitive edge in the renewable energy sector through expanded capabilities in solar and wind energy.

Global and Domestic Synergies
By acquiring EGPIPL’s assets, Waaree gains access to global best practices in renewable energy, further enabling it to cater to India’s growing demand for sustainable power.

Bottomline: A Strategic Leap for Waaree Energies

The acquisition of Enel Green Power India is a pivotal move for Waaree Energies, enabling it to diversify its energy portfolio, expand its operational scale, and solidify its position as a leading renewable energy player. With a robust project pipeline and enhanced execution capabilities, Waaree is well-positioned to leverage India’s burgeoning renewable energy market. Investors and stakeholders should monitor the integration process and future developments as Waaree Energies embarks on this ambitious growth journey.