In a significant move to expand its renewable energy footprint, Inox Clean Energy has finalized a major acquisition. The company, which is preparing for an initial public offering (IPO), has signed a definitive agreement to purchase a 300 MW solar power portfolio from SunSource Energy, a subsidiary of Dutch multinational SHV Energy. The deal is valued at approximately ₹1,000 crore (around $111 million).
Deal Details and Strategic Funding
The acquisition, expected to be officially announced soon, marks a strategic expansion for the INOXGFL Group subsidiary. According to sources familiar with the matter, the transaction will be financed through a combination of pre-IPO fundraising, internal accruals, and capital infusion from the promoters. This development follows closely on the heels of Inox Clean's recent agreement to acquire Macquarie Group's renewable energy platform, Vibrant Energy, for an enterprise value of $600 million.
This purchase of SunSource's solar assets adds substantial scale to Inox Clean's green energy portfolio. As of June, a CareEdge Ratings report noted that Inox Clean had an operational capacity of 157 MW, comprising 107 MW of solar and 50 MW of wind power, with an additional 400 MW under construction. The addition of 300 MW of operational solar capacity significantly boosts its market position.
IPO Plans and Portfolio Expansion
The acquisition is directly linked to Inox Clean's renewed push for a public listing. The company recently withdrew its earlier draft papers for a ₹6,000 crore IPO. With this new asset purchase and the earlier Vibrant Energy deal, the company is now expected to file a fresh Draft Red Herring Prospectus (DRHP). Reports indicate that Inox Clean has already secured commitments for around ₹5,000 crore in pre-IPO funding.
SunSource Energy's total portfolio in India exceeds 600 MW, including both installed and under-development projects spread across 20 states. The sale of this 300 MW segment to Inox Clean was part of a process where SHV Energy had appointed BNP Paribas to manage the divestment. While spokespersons for both Inox Clean Energy and SunSource Energy did not respond to queries before publication, industry sources confirm the details of the transaction.
Renewable Energy M&A Momentum in India
This deal is part of a broader wave of mergers and acquisitions sweeping India's renewable energy sector. Driven by strong government policy support for energy transition and keen interest from global and domestic investors, the space has seen several high-value transactions in the past year.
Notable deals include JSW Neo Energy's takeover of O2 Power for $1.47 billion in December, and the acquisition of Ayana Renewable Power by ONGC NTPC Green in February 2025. Furthermore, reports suggest other major assets are on the block, such as Welspun New Energy and a potential buyback of Sprng Energy by Actis LLP.
Analysts from firms like PwC and Enerdatics predict this M&A momentum will continue to rise. They cite the convergence of energy security needs, decarbonization goals, and digital infrastructure expansion as key drivers, with private equity increasingly targeting renewable energy platforms.
