KEY TAKEAWAYS
- SBI and Axis Bank are leading a ₹15,000 crore term loan facility for ABG’s Sprng Energy buyout
- Deal valued at $1.7–1.8 billion; all-cash offer being structured through Grasim’s renewables arm
- Sprng Energy holds 5 GW operational capacity, contracted primarily to state-owned entities
- The Combined ABG + Sprng platform would reach 9.3 GW, overtaking JSW Energy in renewables
- Japan’s MUFG is also in financing discussions; loan tenor of 5–10 years under negotiation
- Shell acquired Sprng from Actis in 2022 for $1.55 billion; potential exit at $1.8 billion is a 16% gain over four years
Aditya Birla Taps SBI, Axis Bank for ₹15,000 Crore Loan
The Aditya Birla Group has approached State Bank of India and Axis Bank to arrange ₹15,000 crore in rupee term loans to fund an all-cash acquisition of Sprng Energy, Shell Plc’s Indian renewable energy platform, according to people familiar with the matter cited by ET on June 26.
The financing discussions are at an advanced stage, making this the most concrete signal yet that the Birla Group intends to close what would be the largest renewable energy M&A transaction in India since Adani Green’s 2021 buyout of SB Energy.
Birla Leads a Two-Horse Race Against KKR
Four parties submitted binding financial bids for Sprng Energy in May 2026. NIIF and Actis, which had originally incubated Sprng before selling it to Shell in 2022, were eliminated after the first screening round.
Aditya Birla Group and KKR emerged as the two highest bidders, with Shell’s internal committees moving into direct negotiations with both firms. Industry sources now indicate ABG has edged ahead.
What makes this notable is that Aditya Birla entered the race after the original bid deadline, submitting a non-binding offer late, and then outbid three other established players to reach the final round.
What the Loan Structure Looks Like
SBI and Axis Bank are leading the syndicate, with Japan’s MUFG also participating in financing discussions, per persons familiar with the matter.
The loan tenor is being negotiated at 5–10 years, with the final tenor dependent on ABG’s internal preference, shorter tenors remain on the table. Terms and conditions are not yet finalised.
The syndicate is expected to expand as the deal progresses, though Indian banks are likely to dominate the lender group. ABG declined comment; SBI, Axis Bank, and MUFG did not respond to queries.
Also Read: SBI, Axis Bank Set to Raise $2 Billion via RBI’s ECB Swap
Deal Snapshot
| Parameter | Detail |
|---|---|
| Buyer | Aditya Birla Group (via Aditya Birla Renewables / Grasim Industries) |
| Seller | Shell Plc |
| Asset | Sprng Energy Private Limited |
| Estimated Deal Value | $1.7–1.8 billion (~₹14,500–15,500 crore) |
| Sprng Portfolio | 5 GW — solar, wind, hybrid, round-the-clock renewable |
| Project States | Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, Karnataka |
| Offtakers | Primarily state-owned entities (DISCOMs) |
| Loan Quantum | ₹15,000 crore (term loans) |
| Lead Lenders | SBI, Axis Bank; MUFG in discussions |
| Loan Tenor | 5–10 years (under negotiation) |
| Shell’s Acquisition Cost | $1.55 billion from Actis, 2022 |
| Shell’s Implied Return | ~16% over four years |
Why Sprng Is Worth ₹15,000 Crore in Borrowed Money
Sprng Energy’s portfolio is contracted predominantly to state-owned entities, which function as investment-grade offtakers for project finance purposes, meaning the cash flows are predictable and bankable.
The 5 GW portfolio spans solar, wind, hybrid, and round-the-clock renewable projects across five states. For any acquirer trying to scale fast in India’s energy transition, an operational 5 GW platform with locked-in power purchase agreements is difficult to replicate through organic project development in under a decade. That bankability is precisely what makes a ₹15,000 crore leveraged bet defensible.
What It Does to Grasim’s Renewables Position
Aditya Birla Renewables, which operates under Grasim Industries (NSE: GRASIM), currently manages approximately 4.3 GW of renewable capacity across 10 states.
Adding Sprng’s 5 GW would push the combined platform to 9.3 GW, ahead of JSW Energy’s current renewable capacity and narrowing the gap with Greenko, though well behind Adani Green’s 50 GW ambition.
The group has a stated target of building a 10 GW-plus renewable platform; a single Sprng transaction achieves nearly that entire goal overnight.
In December 2025, BlackRock’s Global Infrastructure Partners committed ₹3,000 crore to Aditya Birla Renewables at a valuation of approximately ₹14,600 crore; the Sprng deal would more than double the platform’s asset base at that implied valuation.
India’s Renewable M&A Landscape: Where This Deal Ranks
| Deal | Acquirer | Target | Year | Value |
|---|---|---|---|---|
| Largest to date | Adani Green | SB Energy | 2021 | ~$3.5 billion EV (~$1.35B equity) |
| This deal (proposed) | Aditya Birla Group | Sprng Energy | 2026 | ~$1.8 billion EV |
| Shell’s original buy | Shell Plc | Sprng Energy (from Actis) | 2022 | $1.55 billion |
| PE consolidation | KKR (Serentica) | Statkraft India Solar | 2025 | Undisclosed |
Note: ABG’s offer is reported to exceed the equity cheque, not total enterprise value, of the Adani-SB Energy deal. Adani Green’s 2021 transaction carried a total EV of approximately $3.5 billion but an equity component of roughly $1.35 billion. ABG’s all-cash offer at $1.7–1.8 billion would clear that equity benchmark.
Shell’s Exit and What It Signals
Shell confirmed it “is in initial discussions with potential partners interested in our Sprng business,” adding it is too early to comment on an outcome. The sale is the result of a strategic shift at the company, with shareholders pushing Shell to refocus on its core exploration and production business.
Shell had attempted partial portfolio divestments from Sprng last year before committing to a full exit, with Barclays appointed to advise on the sale process as early as October 2024.
A $1.8 billion exit on a $1.55 billion, four-year-old investment, in a sector Shell is now retreating from, underscores how quickly the global calculus on renewable energy has shifted for major oil companies.
The next concrete data point: a signed term sheet on the ₹15,000 crore facility. SBI and Axis Bank are expected to finalise loan terms within weeks, per persons familiar with the matter, at which point the deal moves from advanced discussion to binding commitment.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Securities investments are subject to market risks. Please consult a SEBI-registered financial advisor before making investment decisions.
