Aditya Birla Group lines up ₹14,000 crore debt for Sprng Energy acquisition

Aditya Birla Group is in advanced talks for a domestic club loan led by Axis Bank to fund its proposed ₹17,200 crore acquisition of Shell’s Sprng Energy. The platform has 5 GWp of contracted renewable capacity, including 3.3 GWp operational.

— Source publishedMon, 24 Aug, 2026, 01:05 IST·First seen Mon, 24 Aug, 2026, 01:21 IST·Source ET Small Business

What happened

Aditya Birla Group is arranging a ₹14,000 crore domestic club loan, led by Axis Bank, to finance its acquisition of Shell’s Indian renewable-energy platform

Key facts

  • ₹14,000 crore proposed long-term debt facility
  • ₹17,200 crore enterprise value
  • ₹5,000 crore Axis Bank may retain
  • Up to 20-year loan tenor
  • Around 7.7% discussed interest pricing
  • 5 GWp contracted portfolio
  • 3.3 GWp operational capacity
  • 1.7 GWp under-construction capacity

Why this matters

The deal underscores the strategic value of scaled renewable platforms with operational capacity and contracted pipelines, while showing domestic club loans can fund large infrastructure-led acquisitions.

What to watch

  • Formal announcement of definitive acquisition agreements and closing timetable.
  • Disclosure of debt-to-equity mix, loan tenure, interest-rate benchmark and covenant package.
  • Whether the ₹14,000 crore facility is fully underwritten by the initial lender group or requires syndication.
  • Operational commissioning pace for the remaining roughly 1.7 GWp contracted pipeline.
  • Quality and duration of power-purchase agreements, customer concentration and payment performance of offtakers.
  • Changes in domestic interest rates, renewable-energy financing liquidity and grid-curtailment conditions.
  • Any indication that Shell retains a minority interest, provides transition support or agrees to price adjustments.
  • Finalize Axis Bank-led club-loan terms, including maturity, pricing, repayment profile and debt covenants.
  • Complete lender and buyer due diligence on power-purchase agreements, operating assets, under-construction capacity, land rights and grid-connection status.
  • Seek applicable regulatory, lender-consent and transaction-closing approvals.
  • Assess use of Sprng Energy output for group captive consumption, renewable-energy certificates and decarbonization commitments across Aditya Birla operating companies.
  • Explore subsequent refinancing through project debt, green bonds, infrastructure vehicles or asset monetization after closing.

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