Aditya Birla targets Sprng with ₹15,000 cr loan in 2026

Deal talks move into financing stage

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 India-focused renewable energy platform. The discussions were reported by The Economic Times on June 26, citing people familiar with the matter.

The financing talks are described as being at an advanced stage, marking the most concrete signal so far that ABG intends to push the transaction to closure. If completed, the proposed acquisition would be among the biggest renewable energy M&A deals in India in recent years.

The deal value under discussion is estimated at $1.7–1.8 billion, with the offer being structured through Grasim Industries’ renewables arm. A signed term sheet on the ₹15,000 crore facility is seen as the next key milestone before the process moves from advanced talks to binding commitments.

What ABG is buying: Sprng Energy’s scale and contracts

Sprng Energy is a renewable platform with 5 GW of operational capacity, spanning solar, wind, hybrid, and round-the-clock renewable projects. The portfolio is contracted primarily to state-owned entities, largely through distribution companies (DISCOMs), according to the details cited in reports.

The assets are spread across multiple states including Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu, and Karnataka. For prospective lenders, the nature of offtake contracts and the dispersion across states are important inputs in assessing cash flow stability and project-level risks.

For ABG, the asset offers immediate operational scale rather than a pipeline-led expansion story. The group has indicated a broader aim of building renewable capacity beyond 10 GW, and the size of Sprng helps accelerate that target.

Financing structure: SBI and Axis lead, MUFG in talks

SBI and Axis Bank are leading the loan syndicate discussions for the ₹15,000 crore term loan facility. Japan’s MUFG is also participating in financing discussions, according to people familiar with the matter.

The tenor being negotiated is 5–10 years, with reports noting that the final tenor may depend on ABG’s internal preferences. Shorter tenors are still under consideration, and the terms and conditions are not finalised.

A facility of this size and tenor will typically require lender comfort on contracted revenues, counterparty quality, and cash flow visibility across operating projects. For ABG, locking in financing terms is central because the deal is positioned as an all-cash transaction.

Bidding process: ABG edges ahead of KKR

Multiple reports indicate that ABG and KKR emerged as the two highest bidders in the process, with Shell’s internal committees moving into direct negotiations with both parties. Industry sources now suggest ABG has edged ahead in the final stage.

Other suitors mentioned in coverage include NIIF-Temasek and Actis. Reports also reference an exclusivity period of around three to four weeks during which due diligence is expected to take place.

While the process appears to be progressing, coverage has also noted that no final decision has been made and talks can still fall through. The clearest near-term marker remains whether the financing facility moves to a signed term sheet.

Shell’s position and official responses so far

Shell has acknowledged that it is in preliminary talks with potential partners interested in Sprng Energy, while stating it is premature to comment on outcomes. Aditya Birla Group has not commented, and email queries to ABG and KKR were reported as unanswered in at least one broadcast account.

Barclays is cited as the investment bank advising on the transaction. From a process standpoint, the combination of advanced lender talks, reported exclusivity, and adviser involvement signals that the deal has moved beyond early-stage interest, even if definitive documentation is still pending.

Valuation context: from Actis sale to a potential Shell exit

Shell acquired Sprng from Actis in 2022 for $1.55 billion. A potential sale at around $1.8 billion implies a headline increase of roughly $150 million compared with the 2022 purchase price, before considering interest and holding costs.

Reports describe the implied return as around 16% over four years. The valuation range being discussed for the current deal is $1.7–1.8 billion, which is also presented as a benchmark for market appetite for Indian renewable operating assets.

Why the deal matters: ABG scale-up and sector consolidation

If ABG acquires Sprng, the combined ABG plus Sprng platform is reported to reach 9.3 GW, which would overtake JSW Energy in renewables capacity, as per the information cited. That capacity jump is a major strategic step in a sector where scale can improve access to financing, bidding competitiveness, and portfolio optimisation.

The transaction is also being framed as the largest renewable energy M&A in India since Adani Green’s 2021 buyout of SB Energy. In a market that continues to attract global capital and strategic interest, large platform transactions can reset valuation expectations for operating portfolios.

Market impact: lenders, offtakers, and execution checkpoints

For lenders, the key variables in a contracted renewable platform include the durability of power purchase agreements, counterparty performance (especially state-linked offtakers), and operational stability across geographies. Sprng’s contracts are described as being primarily with state-owned entities, which makes payment cycles and enforcement frameworks relevant to financing outcomes.

For ABG, the immediate market impact is tied to how quickly it can move from discussion to binding financing and definitive acquisition documents. The reports indicate SBI and Axis Bank are expected to finalise loan terms within weeks, which would convert the financing from intent to a more actionable commitment.

For the broader sector, the deal adds to the trend of large strategic acquisitions and financial sponsors competing for operating renewable platforms, especially those with diversified assets and contracted cash flows.

Key facts table

What to watch next

The next concrete indicator is whether a term sheet is signed for the ₹15,000 crore facility. Reports suggest SBI and Axis Bank may finalise loan terms within weeks, which would be a meaningful step toward a binding deal structure.

Until then, the transaction remains in advanced discussions, with valuation, final financing tenor, and definitive agreements still under negotiation. Shell has confirmed talks are preliminary, and ABG has not publicly commented on the process.