Landmark deal signals a significant shift in how Indian banks are approaching acquisition financing after regulatory changes.
In marking one of the earliest deals under the Reserve Bank of India’s revised acquisition financing framework, HSBC India, as per latest reports, has decided to finance Waaree Renewable Technologies’s ₹1,255 crore acquisition of a 55% stake in Associated Power Structures Private Ltd (APSPL). The transaction, funded through a mix of debt and equity, is being seen as an early test case for India’s newly liberalized merger financing norms.
The move reflects a significant shift in the banking landscape, where traditional restrictions had long made acquisition funding difficult for corporates relying on domestic lenders.
What has changed under the RBI’s revised rules?
Earlier this year, the Reserve Bank of India introduced amendments to its Commercial Banks–Credit Facilities Directions, allowing banks to fund up to 75% of acquisition value, up from earlier conservative thresholds. The new rules also widened eligibility, opening doors for both listed and certain unlisted companies to access structured acquisition financing.
While the framework officially comes into force on July 1, 2026, banks have been allowed to adopt it earlier. HSBC’s decision to implement it ahead of schedule highlights how quickly lenders are moving to tap into this emerging segment.
Why is this deal important for Waaree?
For Waaree, the acquisition strengthens its position in India’s renewable energy and infrastructure ecosystem. Associated Power Structures operates in the power transmission and structural engineering space, an area increasingly tied to India’s clean energy expansion. The deal comes at a time when India’s renewable sector is witnessing aggressive growth, fueled by government targets and rising private investment.
Market experts say this transaction could set the tone for a new wave of mergers and acquisitions financed by Indian banks. Until now, many large deals depended on foreign lenders or private credit.
With RBI’s revised norms creating more room for domestic financing, acquisition funding may become more accessible for Indian companies looking to expand quickly. For banks, it also opens a high-value lending segment that could reshape corporate finance in the years ahead.
