Inox to acquire Macquarie-owned renewable platform Vibrant

Core Viewpoint - Inox Green Energy will acquire Vibrant Energy, an Indian renewable energy platform owned by Macquarie Asset Management, with Vibrant being valued at $200 million in this transaction, significantly lower than the previously sought valuation of $500 million [11][12]. Company Overview - Inox Green Energy Services Limited is a major renewable power operations and maintenance (O&M) service provider in India, managing over 5 GW of renewable assets [3][11]. - Vibrant Energy operates a renewable energy portfolio of approximately 800 MW and has an active pipeline of 3 GW, primarily selling electricity to corporate and industrial customers [6][11]. Transaction Details - Earlier in January, Macquarie hired Standard Chartered Bank to facilitate the sale process of Vibrant Energy [1][11]. - Macquarie had previously dropped the sale of Vibrant due to a valuation mismatch in negotiations, with discussions involving several players including Bain Capital and Sun Energy [7][12]. - The acquisition by Inox Green is part of a strategic move to enhance its renewable energy service offerings [11]. Client Relationships - Amazon is the largest client of Vibrant Energy, with power purchase agreements (PPAs) for about 500 MW of renewable energy capacity, including a 300 MW capacity project in Madhya Pradesh and Karnataka, and a 198 MW wind farm project in Maharashtra [9][12]. - Other notable clients include Sify Technologies, Ultratech, and Saint-Gobain India, with signed PPAs totaling 231 MW, 21.6 MW, and 75 MW respectively [10][12]. Market Context - The increasing demand for renewable energy is driving rapid growth in India's commercial and industrial sectors, highlighting the significance of companies like Inox Green and Vibrant Energy in the market [10][12].