Aditya Birla Group has secured ₹24,000 crore in bank commitments to fund its acquisition of Shell’s renewable energy assets. This transaction follows the Reserve Bank of India’s new policy allowing banks to finance corporate acquisitions. Investors are now focused on the execution and integration of the 5-gigawatt portfolio into the group’s existing energy operations.
Aditya Birla Group has secured bank funding commitments worth ₹24,000 crore to support its strategic acquisition of Shell’s renewable energy portfolio in India. The deal involves the acquisition of 100% of Solenergi Power, the entity controlling a 5-gigawatt renewable energy portfolio formerly held by Shell under the Sprng Energy brand.
The financing package significantly exceeds the group’s initial requirement of ₹14,000 crore, providing the conglomerate with a liquidity buffer as it integrates these large-scale assets. Major public and private sector lenders have anchored this facility, with Axis Bank and the State Bank of India (SBI) committing ₹7,000 crore each. Additionally, Union Bank of India and Punjab National Bank have each pledged ₹5,000 crore. The group is also in discussions with other lenders, including HDFC Bank and Kotak Mahindra Bank, to potentially expand the lending syndicate.
Impact of New RBI Acquisition Finance Rules
This funding structure is a direct result of the Reserve Bank of India’s (RBI) policy change effective April 2026, which permits commercial banks to provide credit facilities for corporate acquisitions. Prior to this regulatory shift, Indian banks were largely restricted from funding such inorganic growth strategies, forcing companies to rely more heavily on internal accruals or external debt markets.
The credit facility has been secured at interest rates ranging between 7.6% and 7.7%, with long-term tenures spanning 12 to 20 years. This development signals a shift in the domestic credit landscape, where banks are now increasingly willing to back large industrial transactions with structured financing products.
Strategic Expansion and Operational Risks
The acquisition of Solenergi Power is valued at approximately ₹17,200 crore. By acquiring this 5-gigawatt portfolio, the group aims to significantly expand its footprint in the renewable energy sector, moving toward higher-capacity utility assets.
However, for investors, the success of this acquisition will depend on several execution factors. Integrating a large, operational 5-gigawatt renewable portfolio requires careful management to ensure that project returns meet internal targets. There is also the inherent risk related to the monitoring responsibilities that banks must now undertake under the new RBI framework for acquisition finance. Furthermore, while the current interest rate environment for this facility is set, the long-term cost of debt will remain sensitive to future monetary policy changes. Shareholders and market participants will monitor the progress of the transaction, which is expected to be completed by the end of 2026, as well as the company’s ability to maintain efficient debt levels following this capital-intensive expansion.