Actis Seeks to Reclaim Sprng Energy in Major $2 Billion Deal

The private equity firm Actis LLP is attempting a major buyback in India’s renewable energy sector. The company is making a move to re-acquire Sprng Energy, a clean power platform it originally built and sold. The potential deal highlights the fierce competition and high value of established renewable energy assets in fast-growing markets.

The Race to Acquire a Clean Energy Leader

Actis is not alone in its pursuit. The process has drawn interest from other significant financial and industrial heavyweights. Major players like the Aditya Birla Group and the global investment firm KKR are also in the race to purchase Sprng Energy from its current owner, the oil and gas giant Shell. Final bids from the contenders are expected to be submitted soon.

The auction could value Sprng Energy at up to $2 billion. This substantial figure underscores the platform’s growth and the strategic importance of renewable energy portfolios. For Shell, a sale would represent a significant divestment as it adjusts its broader energy transition strategy.

A Platform Built for Scale

Sprng Energy’s origins trace back to Actis, which established the platform to consolidate and grow renewable power assets in India. The firm sold Sprng Energy to Shell in 2022 for $1.55 billion. In a relatively short time, the platform has expanded its footprint significantly.

Today, Sprng Energy boasts a portfolio of solar and wind power projects. Reports indicate it has a capacity of over 2.3 gigawatts of renewable energy in operation or under construction. This scale makes it one of the leading independent renewable power producers in India, a country with massive and growing demand for clean electricity.

Strategic Stakes for All Sides

The bidding war reveals the strategic calculations of different types of investors. For Actis, re-acquiring Sprng would be a compelling full-circle investment, allowing it to capitalize on the platform’s further growth after its initial development and sale. Financial investors like KKR see stable, long-term returns in contracted power assets.

For a conglomerate like the Aditya Birla Group, acquiring Sprng Energy would instantly provide a large, operational clean energy business to complement its existing industrial operations. The high valuation reflects the premium that ready-to-operate assets command compared to building new projects from scratch, which involves more development risk and time.

The outcome of this sale will be closely watched as a barometer for merger and acquisition activity in the global renewable sector. A successful deal near the $2 billion mark would signal strong continued confidence in India’s energy transition and set a benchmark for future transactions. The final decision from Shell is awaited by the market, as the race for Sprng Energy enters its decisive phase.