Aditya Birla’s $1.8bn Sprng bid: ₹15,000cr loan

What is being negotiated

Aditya Birla Group (ABG) has approached State Bank of India (SBI) and Axis Bank to arrange a ₹15,000 crore rupee term-loan facility to fund an all-cash acquisition of Sprng Energy, Shell Plc’s renewable energy platform in India. The talks, reported by The Economic Times (ET) on June 26 citing people familiar with the matter, are described as being at an advanced stage.

The proposed acquisition is being structured through the group’s renewables arm under Grasim Industries. The deal value being discussed is $1.7 billion to $1.8 billion, translating to roughly ₹14,500 crore to ₹15,500 crore as cited in the report.

If ABG signs and closes the transaction, it would rank among the biggest renewable energy M&A deals in India in recent years. ET also described it as the most concrete signal yet that ABG intends to close the transaction.

The lenders and the loan structure

SBI and Axis Bank are leading the lending syndicate for the ₹15,000 crore term loans, with Japan’s MUFG also participating in financing discussions, according to people familiar with the matter. The facility is being negotiated as a rupee term loan package rather than a mixed instrument structure.

The tenor under negotiation is 5 to 10 years. The final tenor is expected to depend on ABG’s internal preference, with shorter tenors still on the table. Terms and conditions are not yet finalised.

People familiar with the matter told ET that SBI and Axis Bank are expected to finalise the loan terms within weeks. If that happens, the process would move from advanced discussions to a binding commitment on financing.

Where the deal stands with Shell and bidders

The sale process for Sprng Energy has drawn strong interest, with Aditya Birla Group and KKR emerging as the two highest bidders. The report said Shell’s internal committees moved into direct negotiations with the two parties.

Other reports cited in the provided material also indicate that ABG has emerged as the frontrunner, with the possibility of a formal agreement being signed in the coming weeks, while reiterating that discussions remain ongoing and terms can still change.

Shell has publicly acknowledged that it is in initial discussions with potential partners interested in Sprng Energy, and said it is too early to comment on any outcome. Aditya Birla Group has declined to comment.

Sprng Energy: portfolio and offtake profile

Sprng Energy is described in the ET material as holding 5 GW of operational capacity across solar, wind, hybrid, and round-the-clock renewable projects. These projects are spread across Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, and Karnataka.

The offtaker base is stated to be primarily state-owned entities, mainly DISCOMs. That contracted profile is central to how lenders typically assess cash flow visibility in renewable energy portfolios.

Some commentary included in the provided text references a lower operational capacity figure (2.3 GW) for Sprng. However, the detailed parameter table in the same input specifies a 5 GW portfolio, and that is the primary figure tied to the ET-sourced deal context.

How ABG’s renewable platform could change

One of the strategic angles highlighted in the provided material is scale. The combined ABG plus Sprng platform is expected to reach 9.3 GW, which would overtake JSW Energy in renewables.

That comparison matters because India’s renewable sector increasingly rewards size through lower cost of capital, better bargaining power in equipment procurement, and stronger competitiveness in tenders. But the current discussions remain tied to financing and valuation, with no final agreement announced.

Why Shell’s potential exit is in focus

Shell acquired Sprng Energy from Actis in 2022 for $1.55 billion. A potential exit at around $1.8 billion implies an estimated gain of about 16% over four years, as stated in the provided text.

The material also frames this in the context of Shell “retreating” from renewables, suggesting a shift in how major oil companies evaluate risk-adjusted returns and capital allocation. This context is important to interpret why a large portfolio could come to market despite India’s active renewables buildout.

How this compares with past big renewable M&A

ET described the prospective Sprng acquisition as the largest renewable energy M&A transaction in India since Adani Green’s 2021 buyout of SB Energy. That reference sets expectations for deal complexity, lender scrutiny, and the time required to reach definitive documentation.

It also signals why a ₹15,000 crore loan package is being discussed as a marquee syndication. Large all-cash acquisitions in the sector typically hinge on debt certainty, which is why the lender line-up and tenor negotiations are being watched closely.

Key facts at a glance

Market impact and what investors should track

For lenders and bond investors, the most immediate variable is the final debt package: pricing, covenants, and whether the tenor lands closer to 5 years or 10 years. The decision can influence annual debt servicing and refinancing risk, especially for an asset base contracted largely to state-owned counterparties.

For equity market watchers, the transaction is being positioned as a scale move for ABG’s renewable ambitions via Grasim’s clean energy platform. If the deal progresses to signing, attention will likely shift to the final purchase price within the $1.7–1.8 billion band, how much is funded via rupee debt, and the timeline for closure.

Conclusion

SBI and Axis Bank’s ₹15,000 crore term-loan discussions, with MUFG also in the room, underline that Aditya Birla Group is progressing toward a potentially landmark all-cash acquisition of Shell’s Sprng Energy at a $1.7–1.8 billion valuation. The next key milestone flagged in the reports is the finalisation of loan terms within weeks, which would move the transaction closer to a binding financing commitment and a possible formal agreement in the coming weeks.