Aditya Birla Buys Shell's Sprng Energy For $1.8Bn

Aditya Birla Renewables Limited (ABRen) is in talks to acquire Shell's Indian renewables business Sprng Energy in what is believed to be one of the biggest transactions in India's clean energy market, valued at $1.8 billion.

The structure and scale of deals

ABRen, a wholly owned subsidiary of Grasim Industries Ltd, entered into a definitive agreement for the acquisition of all 100 per cent of the equity shares and securities of the Sprng Energy group of companies from Shell Overseas Investment BV, a wholly owned Shell plc subsidiary. The valuation of the business is valued at enterprise value of $1.8 billion or ₹17,200 crore

The addition increases the portfolio to 5.0 GWh of renewable energy capacity of which 3.3 GWh is already in operation and 1.7 GWh is contracted and under development. This will augment ABRen's current portfolio of 9.3 GW, making it one of the largest renewable developers in India.

Why Birla Group is making big bets

Group chairman Kumar Mangalam Birla presented the takeover in terms of strategy and nation building. Our vision of India's energy transition is the same. In essence, it is about building a strong energy future, improving the competitiveness of industry and laying the groundwork for continued economic growth for this country," Birla said.

Aryaman Vikram Birla, ABRen & Group Director, said that it was "a transformative moment in ABRen's evolution and fast-tracked our journey towards becoming a top-tier renewable energy platform at national scale. The company has now announced that it will reach 20 GW or more of capacity over the next few years.

The provision of funds and regulatory path

It is proposed that the acquisition would be funded by a combination of debt and equity infusion by the BlackRock-owned infrastructure investor, Global Infrastructure Partners which is already an investor in ABRen.

The deal is expected to get finalised by the end of calendar year 2026, subject to key regulatory approvals, among them from the Competition Commission of India and the Central Transmission Utility of India Limited.

Shell's Recalibration

The deal is not a sell-off of India, but a strategic rebalancing of the company's India portfolio, Shell said.

The move is in line with its thrust to rationalise its power portfolio and rechannel investments towards higher performing businesses, and the company has reiterated that India is an important growth market for its integrated gas, mobility and lubricants businesses, it said.

Specifically, Shell said it would keep all employees of Sprng Energy on the job to make sure there is continuity of operations during the change.