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Inox Clean Energy to Acquire 300 MW Solar Portfolio in Rs 1,000 Crore Deal Ahead of IPO

IPO-bound Inox Clean Energy has signed a definitive agreement to acquire 300 MW of solar power assets from SunSource Energy, a renewable energy platform owned by Dutch multinational SHV Energy, for an estimated Rs1,000 crore, according to people familiar with the matter.

An official announcement is expected early next week. The acquisition is seen as a strategic move to scale up Inox Clean Energy’s renewable portfolio ahead of its planned public listing.

According to one of the sources, the transaction values the acquired assets at around Rs1,000 crore, and the company is likely to file a fresh draft red herring prospectus (DRHP) following a series of recent acquisitions.

SunSource Energy’s overall renewable portfolio exceeds 600 MW, including operational and under-development projects spread across more than 20 states. Earlier reports had indicated that SHV Energy had appointed BNP Paribas to explore the sale of SunSource’s Indian solar assets, with an equity valuation of approximately $100 million. In January, media reports also suggested that SHV Energy had agreed to divest around 290 MW of its Indian solar portfolio to the INOXGFL Group.

As per a CareEdge Ratings report (June), Inox Clean Energy currently has 157 MW of operational capacity, comprising 107 MW of solar and 50 MW of wind assets, along with nearly 400 MW under construction.

The latest deal comes shortly after an INOXGFL Group subsidiary announced the acquisition of Macquarie Group-owned Vibrant Energy for an enterprise value of $600 million, marking one of the largest renewable energy transactions in India in recent years. That transaction saw multiple bidders, including Sembcorp Industries, Torrent Power, and Actis, shortlisted during the due diligence phase.

The SunSource acquisition is expected to be funded through a combination of pre-IPO fundraising, internal accruals, and promoter capital, sources said. Inox Clean Energy had earlier withdrawn its proposed Rs6,000 crore IPO and is now expected to submit a revised filing. The company has reportedly secured commitments of nearly Rs15,000 crore to be raised ahead of the listing.

The deal is expected to significantly enhance Inox Clean Energy’s scale and market positioning in India’s rapidly consolidating renewable energy sector.

India’s clean energy space has witnessed heightened mergers and acquisitions activity over the past year, driven by policy support for energy transition and growing investor interest. Recent notable transactions include JSW Neo Energy’s acquisition of O2 Power, ONGC NTPC Green’s purchase of Ayana Renewable Power, and multiple platform-level exits by global investors.

Industry observers expect M&A momentum to continue as renewable platforms pursue scale, capital efficiency, and portfolio optimisation. Reports by Enerdatics and PwC indicate that platform exits, public-to-private transactions, and private equity participation are likely to rise further as India’s energy transition accelerates.