New Delhi, Jan. 27 -- Waaree Renewable Technologies Ltd, the engineering and construction arm of solar module maker Waaree Energies Ltd, is set to enter the grid infrastructure segment by agreeing to acquire a 55% stake in Gujarat-based Associated Power Structures Ltd for Rs 1,225 crore ($133.4 million).
The transaction will see Waaree Renewable invest in new shares of Associated Power as well as purchase secondary shares, the company said in a press release.
Associated Power will use the fresh proceeds to double its existing manufacturing capacity, Waaree said.
Set up in 1986, the Vadodara-based Associated Power is an integrated power transmission company. It provides end-to-end engineering services for power transmission and substation projects, solar mounted structures and telecom towers.
According to the release, the company's revenue has grown from Rs 420 crore in FY23 to Rs 1,219 crore in FY25 and the company is expected to close the current financial year with revenue exceeding Rs 2,000 crore. At present, it has an order book of around Rs 4,000 crore.
The acquisition comes after Waaree last year bought a majority stake in transformer maker Kotsons Pvt Ltd, now renamed Waaree Transpower. The twin acquisitions will strengthen Waaree's position as a full-spectrum energy transition company, capable of delivering end-to-end solutions that cover power generation, transmission, and distribution infrastructure, it said.
Waaree Energies has a 20% share in India's domestic market and a more than 40% share in the export market for India-made solar modules, making it the biggest player in this domain. Waaree has six module-making facilities in India and one in the US, with a total module-making capacity of 22.3GW and cell-making capacity of 5.4GW. Waaree Energies, the group flagship, clocked a 12-month trailing revenue of Rs 18,000 crore.
Published by HT Digital Content Services with permission from VC Circle.