Orien Green (OGPL) today announced that the Board of Directors of the firm has approved entering into exclusive discussions with IL&FS Wind Energy to evaluate a potential merger of the Wind Energy Generation businesses of both entities.
The resulting merged entity, if the companies sign on, will have 1.2 GW of operating wind capacity, and will be the largest listed renewable energy company in India.
OGPL is in the process of demerging its Wind and Biomass entities into two separate Companies, OGPL (Wind) and Bio-bijlee Green Power Limited (Biomass) respectively. Subsequent to the demerger, OGPL will have an operating wind capacity of 425 MW in FY17 with an additional 43 MW under construction which would be live within the combined entity in FY18.
IL&FS Wind has an operating capacity of 775 MW in FY 17. IL&FS is also developing an additional 228 MW which the merged entity will be in a strong position to acquire. Both companies have entered into a non–binding agreement with an exclusivity period of 90 days. The stock had gained 11.25% on the tentative news yesterday and is likely set for further gains on Friday.