ACEN. India Sell-Down Extends Partner-Funded Growth Model

Highlights

• ACEN will sell up to 49% of Ijya Five, a 50MWac (70MWdc) Rajasthan solar build, to Dutch investor DIRO in its fourth India partnership deal.
• The Energy Regulatory Commission approved ACEN's 10-year La Union power supply deal, adding long-dated contracted revenue.
• Vini Research Desk rates ACEN a Buy, ~34% upside to our ₱3.36 fair value.

The Setup

A week after two subsidiaries surrendered solar contracts, ACEN unit Unlimited Renewables Holdings signed subscription, purchase and shareholder agreements with Diamond India Renewables One B.V. for a minority stake in Ijya Five. Ijya Five is developing and constructing a 50MWac (70MWdc) solar project in Rajasthan, India. DIRO enters through an initial 10% voting interest and steps up in later stages. ACEN closed at ₱2.50 for a ₱104.7 billion market cap, 11% above its 52-week low of ₱2.25 from Nov. 11, 2025, though down 8% over the past month on net foreign selling, and our momentum read on ACEN is Bullish.

Source: PSE disclosure

Our Read

The takeaway is that ACEN is funding India growth with partner equity instead of its own balance sheet. Selling down to 51% retains control and the operating role while bringing in third-party capital during construction, the costliest phase. The La Union approval complements it at home, replacing the uncertainty left by the surrendered contracts with a decade of regulated offtake. At ₱2.50, well below the ₱3.45 June high, the market is pricing ACEN as if the pipeline were stalling, yet these deals show it is being financed and contracted.

Vini Research Desk rates ACEN a Buy, seeing about 34% upside to our fair value of ₱3.36. Funding growth through partner capital rather than dilution supports capital appreciation for ACEN, which benefits holders of the Smart Momentum Quant Plan.

What We're Watching

• Closing of DIRO's initial tranche on its conditions precedent
• Ijya Five consideration and any gain booked, via ACEN's third-quarter results
• First deliveries and tariff contribution under the La Union contract