Mumbai: Power producer Tata Power Co. Ltd late on Sunday night said it has agreed to acquire renewable energy company Welspun Renewables Energy Pvt. Ltd in a bid to grow its clean energy portfolio to 2.3 gigawatts (GW).

Tata Power’s renewable energy unit Tata Power Renewable Energy Ltd (TPREL) has signed an agreement to acquire Welspun Renewables Energy in “the largest transaction in renewables space in India”, the company said in a statement on Sunday night.

Tata Power said in a notice to the exchanges on Monday that the acquisition is being made at an enterprise value of Rs 9,249 crore. Its shares were trading down 0.72% at 75.45 at 11.30 am.

Tata Power and Welspun Renewables officials were not available to comment on the deal value outside working hours and the companies had not yet responded to an email request for comment.

Mint had reported on 6 April that Welspun was seeking an enterprise valuation of Rs.9,500-10,000 crore for its assets from potential buyers including Tata Power. Mint had in February reported that Welspun Renewables has put on block its assets to free up capital.

Welspun Renewables, a part of the $3 billion Welspun Group, has about 1,140 megawatts (MW) of solar and wind power assets across eight states in India. Of this, about 990 MW is in solar projects and about 150 MW in wind projects.

TPREL currently operates 294 MW of renewable power capacity and about 400 MW of solar and wind projects are under implementation. Another about 500 MW of renewable assets are being carved out of Tata Power into TPREL through a court process, the statement said. Post the transaction, TPREL will own a capacity of 2.3 GW or 2,300 MW.

Tata Power, one of the largest integrated power companies in India, is targeting doubling its total generation capacity across thermal, renewable and hydropower to 18 GW or 18,000 MW by 2022 from 9 GW now.

India has a target of installing 100GW of solar power capacity and 60GW of wind power capacity by 2022. Last year in December, US-based SunEdison Inc. terminated a deal to acquire Singapore-based Continuum Wind Energy Ltd, which has assets in India and is controlled by Morgan Stanley Infrastructure (MSI). This deal was earlier anticipated to be one of the largest in India’s clean energy sector.

JM Financial Institutional Securities Ltd acted as exclusive transaction advisor to Tata Power in this transaction, while KPMG India Pvt. Ltd acted as the accounting and tax advisor. AZB & Partners was the legal advisor for this transaction.