Shell to sell India renewables platform Sprng Energy for $1.8 billion

Shell plc (LSE: SHEL) has agreed to sell its Indian wind and solar platform Sprng Energy to Aditya Birla Renewables for an enterprise value of about $1.8 billion, a full exit from the business as the oil major reshapes its power portfolio.

Shell said it signed an agreement to sell Solenergi Power Private Limited, the holding company for the Sprng Energy group, through its subsidiary Shell Overseas Investment B.V. The company expects the transaction to complete by the end of 2026, subject to regulatory approvals.

The buyer, Aditya Birla Renewables, is the renewable energy arm of Grasim Industries within the Aditya Birla Group. Indian media reports said the acquisition covers 100% of the equity and securities of Solenergi Power.

Sprng's portfolio includes wind and solar assets supplying power to Indian distribution companies. Reports on the asset base indicate the platform adds nearly 5 GW of contracted capacity to Aditya Birla Renewables, including about 3.3 GW in operation and 1.7 GW under construction.

That would lift the buyer's combined renewable portfolio to roughly 9.3 GW and support its stated plan to build more than 20 GW of renewable capacity over time.

Funding for the acquisition is expected to come from a mix of debt, equity from Grasim Industries, and capital from funds managed by Global Infrastructure Partners, which is part of BlackRock, according to Indian business reports.

For Shell, the sale extends a pattern of renewables disposals. The company said the move reflects its focus on adjusting the portfolio of its power business. Shell has also been linked to sales of offshore wind assets as management emphasizes capital discipline and higher-return investment areas.

Shell bought Sprng Energy from Actis in 2022 for $1.55 billion. On a headline basis, the new $1.8 billion enterprise valuation is about $250 million higher than Shell's original purchase price, though that comparison does not account for changes in debt, portfolio build-out, or any cash flows generated during Shell's ownership.

Based on the reported enterprise value and the roughly 5 GW contracted portfolio, the deal implies a headline valuation of about $360 million per GW of contracted capacity. That is a broad indicator, since operating assets and projects under construction typically command different valuation multiples.

The transaction shows strategic buyers remain willing to pay at scale for contracted wind and solar platforms in India, even as global energy groups become more selective about where they commit capital in power markets.