If the acquisition proceeds, ONGC is expected to use its planned 50:50 green energy joint venture (JV) with NTPC to acquire Ayana in an all-cash transaction. This JV, for which NTPC Green Energy recently sought approval from the Ministry of Corporate Affairs, aims to pursue renewable energy opportunities.

While ONGC is negotiating the terms, insiders suggest the deal may still take months to close, as Ayana’s shareholders may seek to maximise their returns. Bankers are reportedly encouraging JSW to consider improving its bid, although ONGC remains the front-runner.

With NTPC’s expertise in the power sector, a partnership would enable ONGC to mitigate acquisition risks while strengthening its renewable portfolio. Ayana, which operates 1.6 GW of renewable capacity with 3 GW under development, reported a consolidated profit of Rs 460 million on revenue of Rs 8.56 billion for FY24. The current owners have invested Rs 37 billion in the company so far.

This acquisition would mark a significant step for ONGC, which aims to reach 1 GW of renewable assets this fiscal year and scale to 10 GW by 2030, according to Chairman Arun Singh. Established in 2017 by BII, Ayana received investments from NIIF and EverSource, with NIIF increasing its stake to 51% in 2021. (Swarajyamag)