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Shapoorji Pallonji arm sells solar assets to KKR

In a bid to  monetize its assets to reduce debt, Shapoorji Pallonji Infrastructure Capital inked an agreement to sell 317 megawatts (MW) of solar assets to private equity firm KKR on Monday. The cumulative amount of the deal is about 1,554 crore (about $204 million).  169MW of solar projects in Maharashtra and 148MW in Tamil Nadu will be sold as a part of this transaction.

Last year in November when it took over group company Sterling and Wilson Solar Pvt. Ltd public, Shapoorji Pallonji Group’s debt problems started surfacing. The group has also put up other assets on sale, including  its stake in Tata Sons Pvt. Ltd, its roads business and the water purifier and vacuum cleaner business Eureka Forbes.

After its May 2019 investment in India Grid Trust, this is KKR’s second investment in Indian infrastructure. This business agreement is part of its strategy to buy assets backed by long-term contracts and stable cash flows. 

Hardik Shah, managing director at KKR, stated, “Renewables is a growing industry but the market is fragmented and so we do feel that there will be opportunities to acquire more assets.”