Inox Clean Energy expands renewable energy footprint with ₹265 crore acquisition of Skypower Solar India

Inox Neo Energies, a subsidiary of Inox Clean Energy, has acquired Skypower Solar India Pvt. Ltd., which operates a 50 MW (AC) solar project in Madhya Pradesh. Commissioned in 2018, the project has a 25-year power purchase agreement with MP Power Management Company. The deal values the project at an enterprise value of about ₹265 crore, implying a trailing EV/EBITDA multiple of around 5.3x.

A trailing EV/EBITDA multiple compares the enterprise value (EV) of a company (or project) to its earnings before interest, taxes, depreciation, and amortisation (EBITDA) over the past 12 months (the “trailing” period).

“At Inox Clean, we are substantially scaling up our IPP capacity under Inox Neo both organically and inorganically. The acquisition of Skypower, a 50 MW solar power asset aligns well with our inorganic growth strategy. This asset has strong operational and financial credentials and is value-accretive from day one. Importantly, the acquisition is well within the Group’s valuation framework, and we continue to be on the lookout for such opportunities which will aid our plans of reaching 3 GW of hybrid installed capacity in the next 2-3 years,” said Bharat Saxena, CEO, Inox Clean Energy Ltd., in a statement

The 50 MW (AC) / 57.5 MW (DC) solar project, commissioned in FY18, is situated in Madhya Pradesh’s Khandwa district. The power is sold under a 25-year power purchase agreement with Madhya Pradesh Power Management Company Ltd. (MPPMCL).

INOXGFL Group operates across diverse segments, including fluoropolymers, fluorochemicals, battery materials, wind and solar equipment manufacturing, project development, and renewable power generation. The Group consists of four listed companies including Gujarat Fluorochemicals, Inox Wind, Inox Green Energy Services, and Inox Wind Energy, with a combined market capitalisation of around $10 billion.

The Group has forayed into solar manufacturing through Inox Solar Ltd. and is quickly growing its renewable power generation business via Inox Neo Energies Pvt. Ltd., under Inox Clean Energy Ltd.