Non-binding offers had been submitted for up to a 50% stake in Azure Power’s projects at Bhadla in a proposed deal having an enterprise value of about ₹4,100 crore and an equity value of about ₹1,000 crore, according to these people, who declined to be identified.

“The transaction has been put on hold,” one of them said. Mint couldn’t ascertain the names of the companies that submitted the non-binding offers.

The transaction, codenamed ‘Project Agile’ and run by investment bank Ambit, involved a 300 MW operational capacity and two ready-to-build projects totalling 650 MW.

The two projects, part of a Solar Energy Corporation of India Ltd manufacturing-linked bid awarded in 2019, are to be built in two tranches of 300 MW and 350 MW, involving a capital expenditure of ₹3,300 crore.

Azure Power has a total operational capacity of 3.04 gigawatt.

La Caisse, formerly Canadian pension fund Caisse de dépôt et placement du Québec, holds a 53.4% stake in Azure Power, India’s first renewable energy company to have listed on US stock exchanges. Ontario Municipal Employees’ Retirement System (OMERS) holds a 21.4% stake in the company.

“We won’t be keen to comment on the story at the moment,” a spokesperson for Ambit said in an emailed response. Spokespersons for La Caisse and OMERS declined to comment.

An Azure Power spokesperson said the company “does not comment on market speculation regarding its business or entities and individuals not related to Azure. As part of our ongoing business, we routinely assess various strategic opportunities”.

Management churn, an investigation, and a settlement

New Delhi-headquartered Azure Power has struggled with significant top management churn in recent years.

After founder Inderpreet Wadhwa left the company in 2019, new chief executive Ranjit Gupta and chief operating officer Murali Subramanian resigned in April 2022. Harsh Shah, who was named CEO on 1 July 2022, left within two months to rejoin Sterlite Power.

Rupesh Agarwal, who had joined as chief strategy and commercial officer, was named acting CEO. After he left in July 2023, Azure Power brought in Sunil Gupta as CEO in July 2023 and Sugata Sircar as group chief financial officer and executive director, finance in May 2023.

In November 2023, Azure Power was delisted from the New York Stock Exchange.

There has also been an overhang of bribery and corruption investigation under the US’s Foreign Corrupt Practices Act.

In a statement on 21 November 2024, Azure Power said it was “aware of the actions announced by the US Department of Justice and US Securities and Exchange Commission against certain former directors and officers of Azure, as well as certain third parties”, and that the “former directors and officers of Azure referenced in the US Department of Justice and US Securities and Exchange Commission actions ceased to be associated with Azure more than a year ago”.

In its consolidated financial statement for the year ended 31 March 2025, Azure Power said that as “previously disclosed, a class action lawsuit was filed in the US District Court for the Southern District of New York, case number 1:22-cv-07432, against the company and certain of its former directors and officers alleging violations of US securities laws”.

It added: “Subject to final approval by the court, the company and the lead plaintiff have agreed to settle the case without any admission of liability by any defendants. The settlement received preliminary approval by the court on April 30, 2025, and the company expects a hearing to address final approval to take place in September 2025.”

Azure Power also said it had provisioned ₹194.5 crore ($23 million) as of 31 March towards the settlement.

India’s solar draw

India, as the world’s third-largest solar power producer, has been attracting a lot of investor interest.

Singapore’s Sembcorp Industries Ltd and General Atlantic-owned Actis Llp are among half-a-dozen bidders shortlisted to conduct due diligence to acquire Macquarie Asset Management Green Investment Group’s renewable energy platform, Vibrant Energy, in a transaction having an enterprise value of about $600 million.

Among other recent transactions in India’s renewable energy space, Japan’s financial services firm Orix Corp. sold its 17.5% stake in Greenko Energy Holdings to AM Green BV, which is owned by Greenko Group founders Anil Chalamalasetty and Mahesh Kolli.

Also, Hexa Climate Solutions acquired Fortum India Pvt. Ltd , ONGC NTPC Green Pvt. Ltd bought National Investment and Infrastructure Fund-backed Ayana Renewable Power Pvt. Ltd, and a joint venture between the Philippines-based Ayala Corporation-owned ACEN and UPC Renewables is planning to sell a significant stake in its upcoming 1 GW projects in India.

Analysts say India offers significant opportunities for mergers and acquisitions in the green energy space.

“In Asia Pacific, India stands out as a dynamic market, with energy security and ambitious clean-energy targets (backed by government initiatives in renewables, battery storage and green hydrogen) creating a favourable environment for M&A activity,” PwC said in a report dated 24 June.

“Investor appetite for operational and under-construction assets is strong, with hybrid models gaining traction. Government support is expected to drive further M&A energy and infrastructure activity across the region,” it added. “Two examples of this supportive policy environment include the Indian government’s initiative to integrate biogas into the national gas grid and its recent revision of the Domestic Content Requirement policy to boost domestic solar cell manufacturing.”

India has an installed renewable energy capacity of 226.9 GW, of which solar power accounts for 119.02 GW. Of this, 90.99 GW is from ground‑mounted solar plants, 19.88 GW from grid‑connected rooftop systems, 3.06 GW from hybrid projects, and 5.09 GW from off‑grid solar installations.

Overall, India has a solar power potential of 748 GW, led by Rajasthan, Jammu and Kashmir, Maharashtra, Madhya Pradesh, and Andhra Pradesh. The Union government targets adding 50GW of green energy capacity annually to reach 500GW renewable capacity by 2030.