Qatar's Nebras deal with Aditya Birla Group's green arm on hold
Subscribe to enjoy similar stories. Qatar's Nebras Power’s plan to acquire up to 49% stake in Aditya Birla Group’s renewable energy business for around $400 million has been put on hold due to “valuation mismatch", according to two people aware of the development.
The other bidders that participated in the sale process for Aditya Birla Renewables Ltd were Alberta Investment Management Corporation (AIMCo) and BlackRock’ Global Infrastructure Partners (GIP). Mint earlier reported that Aditya Birla Group had hired Standard Chartered to sell up to 49% stake in the group’s renewable energy business to raise around $400 million.
On 18 December, Moneycontrol reported that the conglomerate was in advanced negotiations with Nebras Power to scale up its renewable resources business housed under Grasim Industries. India targets to more than double its green energy capacity from the current level to 500 gigawatts by 2030, drawing interest from the world’s biggest institutional and corporate investors.
Also read | India's renewable energy boom stunted by regulatory ambiguity over sales accords “But the Indian market faces a particular challenge because returns are at the lower end, whereas execution risks are relatively higher," said Vinay Rustagi, senior director, global head of renewables, Crisil Ltd. “The utility scale auctions have always been intensely competitive, and the C&I (commercial and industrial) market has moved in the same direction as more players have moved in.
Moreover, global return expectations have moved up in response to key macroeconomic factors." Spokespersons for Aditya Birla Group, Standard Chartered and Global Infrastructure Partners declined to comment. Queries emailed to the spokespersons of Nebras Power,
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