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Aditya Birla Group Joins Shortlist for Sprng Energy Acquisition Despite Late Entry

NIIF, KKR and Sembcorp also in race as Shell reviews strategic options for its renewable platform. The Aditya Birla Group has emerged as one of the four shortlisted bidders for the acquisition of Sprng Energy, a renewable energy platform owned by UK-headquartered Shell, despite entering the process later than other contenders, according to people familiar with the matter.

The other shortlisted bidders include the National Investment and Infrastructure Fund (NIIF), KKR, and Sembcorp. All four parties have now begun detailed due diligence, which is expected to take six to eight weeks, the people said.

The proposed transaction is likely to be the largest merger and acquisition deal in India’s renewable energy generation sector this year, given Sprng Energy’s scale and operating portfolio.

Sprng Energy, which was earlier owned by private equity firm Actis, was acquired by Shell in 2022 for approximately $1.5 billion. The platform currently has about 5 GW of renewable energy capacity, largely comprising solar and wind assets across India.

Confirming the review process, a Shell spokesperson said the company is “reviewing strategic options to unlock long-term value for Sprng Energy.”

Late entry, but strong financial backing

Although Aditya Birla Group entered the bidding process after initial non-binding offers had been submitted, Shell’s advisors had kept the process open to allow additional bids, enabling the conglomerate to secure a place among the final contenders.

The group’s renewable energy arm recently strengthened its financial position by raising Rs3,000 crore from Global Infrastructure Partners (GIP), an affiliate of BlackRock, enhancing its ability to pursue large-scale acquisitions.

The Economic Times had earlier reported on January 8 that NIIF, KKR and Sembcorp were competing to acquire Sprng Energy after submitting non-binding offers in the last week of December.

Strategic shift at Shell

Shell’s decision to explore a sale of Sprng Energy is seen as part of a broader strategic reassessment of its renewable portfolio, even as the company continues to focus on capital discipline and returns across its global energy businesses.

With due diligence now underway, binding offers are expected once the review process concludes, after which Shell is likely to take a final call on the transaction.