In a deal marking the beginning of a trend towards more mergers in the Indian renewable energy sector, Inox Clean Energy has sealed the deal for the purchase of SunSource Energy’s 300 MW solar power portfolio, which is a company under the Dutch multinational SHV Energy, and the total value of this deal is around ₹10 billion ($120 million).

The whole portfolio consists of the solar power plants that are already in operation and the ones that are still in the process of being developed, and they are located in several different states in India. When they are combined together, this will not only double but also strengthen the company’s position in India’s clean energy market, which is growing rapidly, and thus the total Inox Clean Energy’s renewable capacity will be significantly increased. The payment for the acquisition will be made through a mix of obtaining funds prior to the IPO, profits that have already been retained, and the promoters’ money.

According to analysts, the deal is an indication that the trend of mergers and acquisitions is being accelerated in India’s renewable energy sector, which is, among other things, supported by government policies, investors’ more active interest, and the pressure to become big and have stable cash flows for the purpose of reaching the capital market.

SunSource Energy, which operates over 600 MW of assets across 20+ states, had appointed BNP Paribas to explore the sale of its Indian solar portfolio. The transaction follows other major deals in the sector, including acquisitions by ONGC Green, Welspun New Energy, and Actis-backed platforms.

Currently, Inox Clean Energy operates 157 MW of renewable capacity, including solar and wind, with nearly 400 MW under construction. This latest acquisition will further bolster the company’s growth as it prepares to refile draft papers for a public issue after previously withdrawing a ₹60 billion IPO filing.