Inox Clean Energy is set to acquire Boviet Solar in a deal that could assign an enterprise value of about $750 million (around ₹7,000 crore) to the San Jose, California-headquartered company, said people familiar with the development.
The move is aimed at establishing the privately owned Noida-based renewable energy company’s presence in the US, according to the people.
Boviet ranks among the top 10 solar equipment makers in the US. Enterprise value factors in debt and cash holdings, making it a more composite measure of a company’s total value than equity value alone.
Boviet Solar’s parent company, Chinese diversified industrial group Ningbo Boway Alloy Material, announced a strategic review of its US business about two months ago, sparking speculation about an imminent sale. It said at the time that there were “ongoing trade and policy challenges” for US solar products and “changes to US subsidy eligibility, which have influenced parent-level capital allocation considerations.”
Multiple Chinese solar equipment manufacturers have reviewed their US investments over the past six-eight months in the face of stiff regulatory scrutiny of Chinese equipment under the Trump administration.
Inox Clean Energy sees this as an opportunity to tap into the US market for residential, commercial and industrial solar energy installations and expand its international footprint, according to people with knowledge of the matter.
Queries sent to Inox Clean Energy and Boviet Solar did not elicit a response till press time.
Inox Clean Energy generates green power and manufactures solar equipment such as cells and modules through two companies — Inox Neo Energies and Inox Solar Ltd.
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