ONGC enters the fray to acquire Ayana Renewable Power
livemint.comNEW DELHI : Oil and Natural Gas Corporation has entered the fray to acquire a significant majority stake in Ayana Renewable Power Pvt. Ltd, as India’s largest crude and natural gas producer seeks to bulk up its clean energy portfolio. The state-run ONGC has submitted a non-binding offer for Ayana, which is looking to sell even up to a 100% stake at an equity valuation of about $800 million, said two people aware of the development.
Sembcorp Industries Ltd, Macquarie Group, and JSW Neo Energy have also submitted non-binding offers for the green energy company, which has a 5-gigawatt portfolio of operational and under-construction projects in Andhra Pradesh, Tamil Nadu, Karnataka, Rajasthan, and Gujarat. By the end of 2025, Ayana aims to double its green energy portfolio to 10GW. ONGC and these other companies are expected to be shortlisted for conducting due diligence, following which they can submit binding bids.
The transaction is expected to be completed over the next six months, said the people mentioned above, declining to be identified. As India’s conventional hydrocarbon space undergoes disruptions, ONGC has been scouting for acquisitions in the clean energy space, and was earlier in the fray to acquire Finnish state-run power utility Fortum Oyj’s Indian solar projects totalling 185 megawatts. Malaysia’ state-run Petronas unit Gentari Sdn Bhd ended up winning that bid, making the pursuit for Ayana all the more crucial for ONGC.
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