Shell kicks off sale process of Sprng Energy

Global energy major Shell Plc has kicked off the sale process for its Indian renewable energy unit Sprng Energy and has started reaching out to prospective buyers for the portfolio, which could fetch an enterprise value of $1.6-1.8 billion, two sources aware of the development told Moneycontrol.

Shell acquired the Sprng Energy platform from infrastructure investor Actis in August 2022 for an enterprise value of $1.55 billion, and got a portfolio of 2.1 gigawatts (GW) of renewable energy assets and a pipeline of 7.5 GW. Since then Shell has invested around $100 million in the Indian unit to partly repay debt and to fund development of new assets. It has added around 700-800 megawatts of assets to the pipeline.

The sale process is at the preliminary stages and Shell and its advisor have just started reaching out to prospective investors.

Prospective buyers who have been reached out include American private equity investors KKR and Canada’s Brookfield, both of whom are active investors in the Indian renewable energy sector and own large portfolios of renewable energy assets.

The company’s shift in focus to oil and gas has attracted investors. Shares of Shell Plc hit a record high in October helped by rising energy prices and geopolitical tensions in the middle east.