NEW DELHI: Clean energy firm ACMENSE 0.00 % is scouting the market for acquisitions and expanding its own portfolio in a bid to beef up its 2.5 GW renewable energy portfolio.
The company is targeting a clean energy portfolio of 3.5-4 GW by 2019, and while it may be open to making acquisitions, they are more focused on growing internally by building their own assets, a senior company executive said.
“We are open to acquisitions but, as of now, we are focusing on our own portfolio,” said Nikhil Dhingra, CEO at ACME Solar. “Acquisition is something we will look on a case to case basis. Because we are also a construction company, so we build our own assets and we like to grow that way.”
Dhingra added that ACME recently won additional 250 MW solar tender in Maharashtra, so there are enough projects in the pipeline to help them expand their capacity. He said acquisitions would depend on the cost and profitability of assets.
Industry sources said the company was in initial discussions for potential acquisition. “ACME is looking to acquire solar assets, and the talks are in preliminary stage. They are looking at projects which may be facing technical challenges, so they can develop them further,” a person directly aware of developments told ET.
The company had initially planned a 7.5 GW capacity addition by 2019 end, but has now trimmed the target. ACME’s plan to firm up its portfolio also comes in the run up to its IPO. It had filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in September last year to raise more than Rs. 2,000 crore. They later planned to revise valuation and file the DRHP again.
“We are considering to file the DRHP again, but we are not sure of the timeline as yet. It may come in a month or two,” Dhingra said.
The renewable energy market in India is witnessing a wave of consolidation activity, with a host of sellers looking to shed their assets at exorbitant prices. “Most sellers are asking really high prices” the source cited above said.
Source: economictimes.indiatimes
