JSW Neo Energy and Oil & Natural Gas Corp (ONGC) have emerged as the final contenders in the race to acquire Ayana Renewable Power, a green energy company backed by the National Investment & Infrastructure Fund (NIIF). Sources familiar with the development indicate that both companies submitted revised offers last week, with Ayana’s enterprise value estimated between $1.6 billion and $1.8 billion.
The acquisition process began earlier this year when multiple bidders expressed interest in Ayana. Four companies, including Sembcorp and Macquarie, were shortlisted in April to conduct due diligence. However, their bids were ultimately deemed less competitive compared to the offers from JSW Neo Energy and ONGC. Enterprise value typically accounts for a company’s debt and liquid assets, making it a key consideration in these offers. Ayana Renewable Power’s ownership is shared between three major stakeholders: NIIF, which holds a controlling 51% stake, British International Investment with 32%, and Eversource Capital at 17%. The company, founded in 2018 by British International Investment (previously known as CDC), has grown to become a significant player in India’s renewable energy sector. NIIF assumed controlling interest in December 2020.
The financial structure of Ayana is notable, with its three co-investors collectively committing $721 million in equity. Meanwhile, its debt is estimated between $800 million and $1 billion. The company boasts a portfolio of over 4 GW in solar, wind, and hybrid power projects across various Indian states, with 1.3 GW of operational capacity in Andhra Pradesh, Karnataka, and Rajasthan. Ayana also has 2.8 GW of projects currently under development, with 2 GW already backed by firm power purchase agreements (PPAs). The remaining 800 MW still await PPAs, although the company aims to commission a 300 MW wind power asset within the ongoing fiscal year. The remainder of the projects is expected to be completed by FY26, provided the necessary agreements are finalised.
For JSW Neo Energy, this acquisition represents a crucial step toward its goal of achieving 10 GW of renewable energy generation capacity. Both JSW and ONGC are keen to expand their presence in the renewable sector, and acquiring Ayana Renewable Power would significantly bolster their portfolios. The ongoing competition for Ayana signals the growing importance of renewable energy in India’s energy strategy, as major players seek to capitalise on the increasing demand for sustainable power solutions.
