ONGC Negotiates Acquisition of 125 MW Solar Asset from Sprng Energy – EQ
In Short : ONGC is in talks to acquire a 125 MW operational solar asset from Sprng Energy, valued at ₹500 crore. This asset, located in Rajasthan, is part of Sprng’s effort to divest some of its renewable energy projects. The deal, advised by HSBC, aligns with ONGC’s strategy to expand its renewable energy portfolio and support India’s clean energy goals.
In Detail : Oil and Natural Gas Corporation (ONGC) is currently in discussions to acquire a 125 MW operational solar asset from Sprng Energy, a subsidiary of Shell. The deal, valued at approximately ₹500 crore, is a significant step in ONGC’s efforts to expand its renewable energy portfolio.
Sprng Energy, which currently has a total renewable energy capacity of 2.3 GW, is seeking to divest some of its assets, and the 125 MW solar project in Rajasthan has attracted several bidders. ONGC has emerged as the leading contender in the ongoing negotiations.
The two companies have entered into an exclusive arrangement to finalize the terms of the sale. Although the deal is progressing, it is expected that the completion of the transaction could take several months.
HSBC is advising Sprng Energy on the potential sale, ensuring that all aspects of the transaction are handled efficiently. The talks are still in the early stages, with both companies working toward an agreement that benefits both parties.
Sprng Energy was acquired by Shell from private equity investor Actis in August 2022 for an enterprise value of $1.55 billion. At that time, Sprng Energy had an operational renewable energy capacity of 2.1 GW, and the current deal represents part of Shell’s broader strategy to manage its renewable assets.
This acquisition aligns with ONGC’s broader goal to diversify its energy portfolio and invest more heavily in renewable energy. As India continues to focus on clean energy initiatives, this move further supports ONGC’s commitment to contributing to the country’s renewable energy objectives.
