CESC Subsidiary Purvah Green Power to Acquire 1.4 GW Renewable Energy Portfolio for ₹4,859 Crore

CESC Limited has announced a major expansion of its renewable energy portfolio as its subsidiary Purvah Green Power Private Limited (PGPPL) entered into a Share Purchase Agreement (SPA) on August 10, 2026, to acquire 100% of six renewable energy companies from ReNew Solar Power Private Limited.

The acquisition gives Purvah Green Power an operating renewable energy portfolio of approximately 1.4 GWp, significantly increasing its operational capacity and strengthening CESC’s position in India’s rapidly expanding renewable energy market.

CESC Renewable Energy Acquisition: Key Highlights

Six Renewable Energy Companies Being Acquired

Purvah Green Power will acquire the entire share capital of six companies holding operational renewable energy assets.

Although the portfolio includes wind assets, the acquisition is predominantly a solar portfolio, with more than 1.3 GW of solar capacity.

₹4,859 Crore Enterprise Value

The transaction has an enterprise value of ₹4,859 crore, excluding a contingent payment estimated at approximately ₹230 crore.

The contingent payment will become payable only if additional realisation from a change-in-law claim occurs.

At closing, the cash consideration is expected to be approximately ₹1,582 crore, including ₹94 crore of net current assets.

The closing consideration comprises:

• ₹589 crore payment to sellers for share capital
• ₹993 crore infusion of unsecured promoter debt, which will be used to repay existing promoter debt
• The transaction remains subject to post-closing adjustments as specified in the SPA.

The acquisition is being funded by the parent company.

More Than 90% Capacity Has Long-Term PPAs

One of the key attractions of the transaction is that the acquired assets are already operational and have an established generation track record.

According to the company, more than 90% of the acquired capacity is contracted with the Solar Energy Corporation of India (SECI) through long-term power purchase agreements.

The remaining capacity is contracted with Karnataka distribution companies.

Importantly, the PPAs have a 25-year tenure, providing long-term revenue visibility for the acquired assets.

This is strategically significant because the acquisition shifts Purvah’s renewable portfolio toward assets that are already generating electricity and contracted cash flows rather than relying entirely on projects that are still under development.

Purvah Green Power’s Capacity to Rise Sharply

Prior to the acquisition, Purvah Green Power had approximately 3.4 GWp of contracted capacity.

Following completion of the transaction, its total contracted capacity is expected to reach approximately 4.8 GWp.

This will comprise:

• 1.8 GWp operational capacity
• 3 GWp tied-up capacity at various stages of construction
• 2.2 GWh battery capacity tied up and under implementation

The acquisition therefore significantly increases the proportion of Purvah’s portfolio that is already operational.

Acquisition Accelerates CESC’s Renewable Energy Ambitions

The transaction represents a major step in CESC and the RP-Sanjiv Goenka Group’s strategy to build a large renewable energy platform.

Purvah Green Power is targeting a 10 GW renewable energy portfolio over the coming years.

The acquisition of 1.4 GWp of operating assets allows the company to add substantial renewable capacity immediately rather than waiting for new projects to be developed and commissioned.

It also complements the company’s existing pipeline of contracted renewable projects.

From Conventional Power to a Diversified Energy Platform

The acquisition is particularly important from a strategic perspective for the RP-Sanjiv Goenka Group.

CESC has a long history in the conventional power sector. By expanding its renewable portfolio through both greenfield projects and acquisitions, the group is moving toward a more diversified energy business.

The transaction provides three potential strategic benefits:

1. Immediate operating scale through 1.4 GWp of renewable assets.
2. Long-term cash-flow visibility through contracted PPAs.
3. Faster progress toward the 10 GW renewable energy target.

Acquisition Cost of the Six Companies

The disclosed acquisition cost for the equity of the six target companies is as follows:

Purvah Green Power will acquire 100% ownership of each of the six companies. Once the transaction is completed, these companies will become step-down subsidiaries of CESC Limited.

No Related-Party Transaction

CESC stated that the acquisition does not constitute a related-party transaction.

The company also said that its promoter, promoter group and group companies have no interest in the target companies.

No governmental or regulatory approval is required for the acquisition, according to the disclosure.

The transaction is expected to be completed before October 31, 2026.

Operational Track Record of the Assets

The acquired companies have different operational histories.

ReNew Hans Urja, the largest asset in the transaction with 810 MWp, was incorporated in June 2021. Its projects were commissioned in phases during 2024, with the final portion commissioned in December 2024. It reported turnover of ₹132.8 crore in FY2024-25, compared with ₹0.1 crore in FY2023-24.

ReNew Solar Photovoltaic, with 506.25 MWp, commenced operations in March 2025 and reported FY2024-25 turnover of ₹41.5 crore.

The four smaller wind entities have been operating for several years. Their FY2024-25 turnover was:

• ReNew Wind Energy (Karnataka 3): ₹19.0 crore
• ReNew Wind Energy (MP Four): ₹19.5 crore
• ReNew Wind Energy (Karnataka 4): ₹20.1 crore
• ReNew Agni Power: ₹20.6 crore

The figures indicate that the transaction combines relatively newer large-scale solar assets with established wind assets.

Why the Acquisition Matters for CESC Investors

For investors tracking CESC, the transaction represents more than just an increase in installed capacity.

The key change is the quality and maturity of the renewable portfolio.

A portfolio dominated by projects under development can take several years before generating meaningful operating cash flows. By acquiring operational assets with long-term PPAs, CESC’s renewable platform gets immediate generation capacity and greater revenue visibility.

The deal also reduces the time required to build scale in renewable energy.

At the same time, investors will likely monitor the acquisition financing, debt levels, asset generation performance and the eventual returns generated by the acquired portfolio.

CESC’s Broader Business Scale

CESC remains the flagship power utility of the RP-Sanjiv Goenka Group.

The company operates generation, transmission and distribution businesses and serves approximately 4.4 million consumers across several regions, including West Bengal, Uttar Pradesh, Rajasthan, Maharashtra and Chandigarh.

For FY2026, CESC reported:

The renewable acquisition adds another important growth engine to this existing power business.

CESC Renewable Energy Acquisition: What Investors Should Watch

The transaction could become an important milestone in CESC’s renewable energy expansion. Investors may watch the following developments:

1. Completion of the transaction: The acquisition is expected to close before October 31, 2026.

2. Asset generation: Actual generation from the acquired solar and wind assets will be important for assessing operating performance.

3. Cash-flow generation: Since most of the portfolio is backed by long-term PPAs, the stability of contracted cash flows will be a key factor.

4. Funding and leverage: The ₹1,582 crore closing cash consideration and associated promoter debt structure will be important for evaluating the financial impact.

5. Renewable pipeline: Purvah’s ability to execute its additional 3 GWp tied-up capacity will determine how quickly the platform moves toward its longer-term ambitions.

6. 10 GW target: The acquisition represents a major step toward the group’s goal of creating a 10 GW renewable energy platform.