NTPC Limited (NSEI:NTPC) may join Oil and Natural Gas Corporation Limited (NSEI:ONGC) as an equal partner in the latter's bid to acquire Ayana Renewable Power Private Limited, according to the people with knowledge of the matter. Oil and Natural Gas Corporation (ONGC) has emerged as the highest bidder, ahead of JSW Neo Energy Limited, for Ayana Renewable Power, which is co-owned by India's sovereign investment fund NIIF (National Investment and Infrastructure Fund Limited) (51%), British International Investment plc (32%), and EverSource Capital Group (17%), the people said. The state-run oil and gas producer is currently negotiating the share purchase agreement with Ayana's owners and, if all goes well, it may use its planned green energy joint venture (JV) with NTPC to acquire 100% stake in the renewable energy platform in an all-cash deal, they added.
On November 4, 2024, NTPC said its subsidiary NTPC Green Energy Limited had applied to the corporate affairs ministry to incorporate a 50:50 JV company with ONGC Green (ONGC Green Limited) after obtaining clearances from the finance ministry's divestment department and NITI Aayog. "The JV company will also seek opportunities to acquire renewable energy assets," the state-owned company added. "The deal with ONGC will likely go through if there are no surprises in the share purchase agreement," a person familiar with the matter said on condition of anonymity, adding that the deal could still take months to close as the current Ayana shareholders might try to maximise gains.
While ONGC seems determined to close the deal, bankers are trying to persuade JSW to improve its offer, said the people cited earlier. Only ONGC and JSW have made binding offers for Ayana, they added. ONGC, NTPC, JSW, NIIF, BII and EverSource Capital declined to comment.