India: Tata Power’s Welspun acquisition is EPS accretive

India: Tata Power’s Welspun acquisition is EPS accretive

Solar Panels. Photo: Mint

Tata Power Co. Ltd wants to increase the proportion of renewable energy assets in its portfolio to 40%. If it decides to build new solar power plants today, it can expect to spend Rs.6 crore per megawatt (MW). So, at first blush, its deal to buy Welspun Renewables Energy Pvt. Ltd’s 1,140MW portfolio for an enterprise value of Rs.9,249 crore, or Rs.8.1 crore per MW, appears costly.

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