Another major green energy deal is brewing 👀

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Jul 6, 2021

1 min read

What happened — Mytrah Energy, a Hyderabad based renewable energy company, is looking to sell its assets and the bids rolling in are off the hook — with Adani Green, Renew Power, and even private equity guys like KKR, looking to bag the deal.

What do they do — Mytrah runs a sizable portfolio of clean energy assets, primarily in solar and wind, which churn 1.7 GW of energy, spread across 9 Indian states. Mytrah generates about $370M in revenue, and expects to be wooed for a price tag of around $2.2 billion.

Big picture — GOI’s aggressive push to move India away from a heavy coal-powered energy economy has LIT up a party downstream.

Couple major happenings in the segment lately:

  • Adani Energy stocks running 8x in the past year
  • Adani acquiring SB Energy’s India assets from Softbank for $3.4 billion
  • Renew Power, one of the largest pure play here, going for a US IPO soon
  • Reliance bringing bazookas to the party with its ₹75,000 crore commitment

It takes YEARS to build and deploy a viable clean energy portfolio — hence in the meantime scarce existing assets will likely be valued at a much higher multiple, as demand for clean power from end markets like electric vehicle infra buildout for example, keep spiking.

Going forward — expect tons of consolidation, because there’s large fixed costs associated with running clean energy farms. If you’re not growth obsessed, you’re better off selling to the highest bidder with braver ambitions. Adani, KKR, Renew are just the guys.

Bottomline — “India’s transformation to clean energy” is a long term thematic opportunity one can’t afford to not have exposure to.

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