ACME Solar abandons intent to acquire solar park development company
ACME Solar Terminates Agreement to Acquire AK Renewable Infra Pvt Ltd
In a surprising turn of events, renewable energy firm ACME Solar has terminated its agreement to acquire AK Renewable Infra Pvt Ltd, a Jaipur-based solar park developer. The decision was made a week after a Rs 79.25 crore ($9 million) deal was inked, with the reasons for the termination remaining unspecified.
The termination comes at a time when ACME Solar is facing challenges due to policy and payment woes. There are concerns about the company's liquidity due to these ongoing issues. However, ACME Solar's shares are currently trading near their all-time high, and the company has a market capitalization of more than Rs 19,100 crore.
Prior to this development, ACME Solar had executed a share purchase agreement to acquire a 100% stake in AK Renewable. AK Renewable, founded in 2021, did not report any turnover as of FY25. The company is developing a 300 MW solar project in Rajasthan.
Meanwhile, ACME Solar has acquired two solar projects from Acme Solar. The details of these projects were not disclosed. It's worth noting that ACME Solar secured Rs 15,000 crore in debt funding for greenfield projects last month.
Malaysia's Petronas paid a premium to buy assets from Acme Solar. The financial details of the deal were not disclosed. ACME Solar had filed for a $360 million initial public offering in July 2021 and went public in November. Recently, the company filed for a $335 million IPO.
ACME Solar's operational capacity was around 2.89 GW as of Q1 FY26. The company aims to reach an operational capacity of 7 GW by FY28 and 10 GW by 2030. However, the ongoing challenges may impact these targets.
Interestingly, ACME Solar Holdings Ltd abandoned the plan to acquire Jaipur-based solar park developer AK Renewable Infra Pvt Ltd due to unspecified reasons, and the plan was officially called off on August 11, 2023.
On a separate note, the ex-CEO of Cognizant is reportedly raising a private equity fund in America. The details of this fund are yet to be disclosed.
This news serves as a reminder of the dynamic nature of the renewable energy sector and the challenges that companies in this space may face. As ACME Solar moves forward, it will be interesting to see how it navigates these challenges and what impact they may have on its future growth and expansion plans.
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