The Aditya Birla Group (ABG) has approached State Bank of India (SBI) and Axis Bank to secure a ₹15,000 crore rupee term loan. The capital is earmarked for an all-cash acquisition of Sprng Energy, the Indian renewable energy platform currently owned by oil major Shell Plc.
If finalized, the deal is expected to be valued between $1.7 billion and $1.8 billion (~₹14,500 to ₹15,500 crore), positioning it as one of the largest mergers and acquisitions (M&A) in the history of the Indian green energy market.
Deal Snapshot
| Parameter | Details |
| Potential Acquirer | Aditya Birla Group (via its renewables arms / Grasim) |
| Current Owner | Shell Plc (Originally incubated by private equity firm Actis) |
| Target Asset | Sprng Energy Private Limited |
| Portfolio Capacity | 5 Gigawatts (GW) of operational solar, wind, and hybrid projects |
| Financing Structure | ₹15,000 crore via 5-to-10-year Rupee Term Loans |
| Lead Underwriters | State Bank of India (SBI) & Axis Bank (Japan’s MUFG also in talks) |
Why the Stakes are So High
-
A New Green Titan: Aditya Birla’s green arm currently operates around 4.3 GW. Absorbing Sprng’s robust 5 GW portfolio would instantly elevate ABG’s total clean energy platform to 9.3 GW. This vaulting growth would allow the group to leapfrog JSW Energy and establish a direct rivalry with heavyweights like Adani Green and ReNew.
-
Challenging the Record Book: ABG’s all-cash structure is being billed as a potential challenger to Adani Green Energy’s landmark 2021 takeover of SB Energy ($3.5 billion enterprise value), particularly regarding the sheer scale of the immediate equity check size.
-
Sprinting Ahead of KKR: While four major entities submitted binding offers in May 2026, the race narrowed down to a final round between ABG and global private equity firm KKR. Sources indicate that ABG has now emerged as the frontrunner, entering exclusive negotiations.
-
Why Shell is Exiting: Shell acquired Sprng Energy in 2022 for $1.55 billion. Selling the asset for $1.8 billion marks a clean ~16% asset appreciation. The exit aligns with structural demands from Shell’s London headquarters, where shareholders are nudging the oil giant to re-focus capital back onto core, high-margin upstream oil and gas exploration.
Current Status
The financing syndicate is currently hammer-and-tongs over loan covenants, tenors, and interest pricing structures. Because Sprng Energy’s 5 GW capacity is backed by stable, long-term power purchase agreements (PPAs) with low-risk state utilities, lenders view the debt facility as highly bankable. The deal now awaits structural sign-off from Shell’s executive boards in London.
