New Delhi-based renewable energy company Green Infra has acquired TVS Energy for an undisclosed sum. TVS has on Friday announced to the stock exchanges that the company has disinvested 7.35 lakh equity shares of TVS Energy, a subsidiary company constituting 90% of TVS Energy’s share capital, to Green Infra. Consequently, TVS Energy and its subsidiaries — TVS Wind Power and TVS Wind Energy — cease to be subsidiaries of the company effective August 16.
Through this acquisition, Green Infra has added to its portfolio 59.75 MW of windfarms across Tamil Nadu and Maharashtra with a commitment to continue to supply power to the TVS Group. Sources in the know said that Green Infra’s operating/developing capacity will move up to 377 MW with this acquisition and the company is on target to reach 500 MW in the next two years.
When tried to reach, TVS officials were not available for comments on the valuation and other aspects.
TVS Motor had on August 8 informed the stock exchanges that the board of directors had given its approval for divesting majority stake in TVS Energy, a subsidiary company, without disclosing the name of the purchaser. There were reports suggesting Green Infra, Orient Green Power among the front runners to buy out TVS Energy.
Market sources here said that TVS was looking out for a buyer for quite sometime as wind energy found to be a non-core business for the company. The company found wind energy business too capital intensive and continued borrowings will not be a viable proposition for the company as it hurts its very core business of two-wheelers, the sources added.
Originally set up as a subsidiary by TV Sundaram Iyengar and Sons, the holding company of TVS Group, TVS Energy was later acquired by TVS Motor Company in December 2009. In mid of 2010, Sundaram Clayton, the holding company of TVS Motor, too picked up some stake in TVS Energy. The company has wind assets in Tirunelveli, Theni districts of Tamil Nadu.