IDFC infrastructure fund set to buy First Solar’s India portfolio for $300 million

MUMBAI: The infrastructure fund of multi-asset manager IDFC Alternatives is set to make its biggest acquisition till date by taking over the entire 200 megawatts of First Solar’s operational portfolio of solar power projects in India for around Rs 1,950 crore ($300 million) as consolidation picks up momentum in the renewable energy sector.

These projects — seven in all — are located in Telangana and Andhra Pradesh. The definitive agreements between both parties have been signed and a formal announcement is expected today (Monday). The transaction is expected to close by December.

Arizona-headquartered First Solar is an American photovoltaic (PV) manufacturer of rigid thin film modules, or solar panels, and a provider of utilityscale PV power plants and supporting services like finance, construction, maintenance and end-of-life panel recycling. In India, it has supplied over 1gigawatt (GW) worth of panels while globally its supplies are worth over 17 GWs, according to the company’s website. Its current market cap is $5.1 billion. It also develops greenfield solar parks and sells them once fully operational. This is the first such divestment by the firm in India. A clutch of underconstruction assets have been kept out of the ambit of this transaction for the time being as they lack operating and payment history but may get added subsequently.

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