Another major green energy deal is brewing ๐Ÿ‘€

Another major green energy deal is brewing ๐Ÿ‘€

What happened โ€” Mytrah Energy, a Hyderabad based renewable energy company, is looking to sell its assets and the bids rolling in are off the hook โ€” with Adani Green, Renew Power, and even private equity guys like KKR, looking to bag the deal.

What do they do โ€” Mytrah runs a sizable portfolio of clean energy assets, primarily in solar and wind, which churn 1.7 GW of energy, spread across 9 Indian states. Mytrah generates about $370M in revenue, and expects to be wooed for a price tag of around $2.2 billion.

Big picture โ€” GOIโ€™s aggressive push to move India away from a heavy coal-powered energy economy has LIT up a party downstream.

Couple major happenings in the segment lately:

  • Adani Energy stocks running 8x in the past year
  • Adani acquiring SB Energyโ€™s India assets from Softbank for $3.4 billion
  • Renew Power, one of the largest pure play here, going for a US IPO soon
  • Reliance bringing bazookas to the party with its โ‚น75,000 crore commitment

It takes YEARS to build and deploy a viable clean energy portfolio โ€” hence in the meantime scarce existing assets will likely be valued at a much higher multiple, as demand for clean power from end markets like electric vehicle infra buildout for example, keep spiking.

Going forward โ€” expect tons of consolidation, because thereโ€™s large fixed costs associated with running clean energy farms. If youโ€™re not growth obsessed, youโ€™re better off selling to the highest bidder with braver ambitions. Adani, KKR, Renew are just the guys.

Bottomline โ€” โ€œIndiaโ€™s transformation to clean energyโ€ is a long term thematic opportunity one canโ€™t afford to not have exposure to.

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