Birla Buys Sprng From Shell in $1.8 Billion Clean Energy Deal

Aditya Birla Renewables has agreed to acquire Shell’s Sprng Energy in a $1.8 billion deal that will more than double the scale of its renewable power business and make it one of India’s largest clean-energy platforms.

The Grasim Industries subsidiary will buy all shares and securities of Solenergi Power Private Ltd, the parent company of Sprng Energy, from Shell Overseas Investment BV.

The transaction values the business at an enterprise value of ₹17,200 crore, including debt. The final equity payment will be calculated after adjustments for debt, cash and other agreed items.

Sprng will add about 5 gigawatt-peak (GWp) of contracted capacity, comprising 3.3 GWp in operation and 1.7 GWp under construction. Together, the two businesses will have a portfolio of about 9.3 GWp, placing Aditya Birla Renewables among the larger renewable-energy companies operating in India. GWp refers to the maximum output of solar panels under standard test conditions.

The acquisition also gives Aditya Birla Renewables a broader business mix. The company has built much of its presence by supplying renewable power to commercial and industrial customers, while Sprng operates large utility-scale wind and solar projects backed by long-term contracts.

That combination provides the group with operating assets, contracted cash flows and a development pipeline as it works toward expanding renewable capacity to 20 GWp over the coming years.

“This acquisition brings together two highly complementary platforms and marks an important milestone in ABRen’s evolution,” Aditya Birla Group Chairman Kumar Mangalam Birla said. “Together, we will have a diversified portfolio and a deep development pipeline that puts us on course to scale to 20 GWp in the coming years.”

Aditya Birla Renewables plans to finance the purchase through a combination of borrowing, an equity infusion from Grasim and capital managed by Global Infrastructure Partners, the infrastructure investor owned by BlackRock.

The companies expect the transaction to close before the end of 2026, subject to regulatory approvals and customary closing conditions. Sprng employees will transfer with the business, Shell said.

The sale continues Shell’s retreat from parts of the renewable-energy market under Chief Executive Wael Sawan, who has placed greater emphasis on liquefied natural gas, upstream oil and gas and businesses offering higher returns. Shell bought Sprng in 2022 for $1.55 billion and said in February that it was reviewing strategic options for the company.

For Aditya Birla Group, the purchase will add operating capacity and long-term contracted projects as India expands its electricity system. The country is targeting 500 GW of non-fossil-fuel generation capacity by 2030, creating a market in which domestic conglomerates and global infrastructure funds are competing for renewable assets.