Welspun taps EY for next big clean-energy stake sale of $100 million

Core Insights - Welspun World is planning to sell a majority stake in its clean-energy platform, Welspun New Energy, for an equity value of approximately $100 million, having hired EY for the process [1][2][3] Group 1: Company Overview - Welspun World previously sold its entire 1.1 GW renewable energy portfolio to Tata Power for $1.4 billion in 2016 [3] - Welspun New Energy has a contracted capacity of 1.2 GW, with 866 MW contracted to state-run entities such as NTPC Ltd and Solar Energy Corporation of India [2] Group 2: Market Context - The Indian government aims to increase renewable energy capacity from 197 GW to 500 GW by 2030, with a long-term goal of 1,800 GW by 2047 and 5,000 GW by 2070 [5] - Foreign direct investment (FDI) in India's electricity sector has doubled since pre-pandemic levels, reaching $5 billion, with 83% of power sector investment directed towards clean energy in 2024 [6][7] Group 3: Investment Opportunities - India received around $2.4 billion in development finance institution funding for clean energy projects in 2024, making it the largest recipient globally [7] - Significant transactions in the sector include plans by Siemens AG and Fullerton Fund Management to acquire a 49% stake in Hygenco Green Energies, and Indian Oil Corp's renewable energy subsidiary planning to acquire a 50% stake in Fourth Partner Energy for around $400 million [9][10]