Suzlon Energy to pick up 76% stake in Renom Energy

7 Aug 2024 , 03:08 PM

Suzlon Energy Ltd, a renewable energy solutions provider, announced on Tuesday (August 6) that its board of directors has approved the acquisition of 22,80,000 equity shares, representing 76% of Renom Energy Services Private Ltd’s equity share capital, in multiple tranches.

Suzlon Energy Limited’s board of directors approved the acquisition of 22,80,000 equity shares, representing 76% of Renom Energy Services Private Limited’s equity share capital on a fully diluted basis, in numerous tranches, according to a stock exchange filing.

Suzlon Energy will acquire Renom Energy Services for ₹660 Crore, making it a subsidiary of the company. The initial acquisition of a 51% holding (15,30,000 equity shares) is scheduled to be completed within three months, subject to the closing conditions specified in the SPA.

Suzlon Energy would pay ₹400 Crore for the initial stake. The extra 25% stake (7,50,000 equity shares) will be acquired within 18 months for ₹260 Crore, either in cash or through a share swap.

Renom Energy Services, India’s largest Multi Brand Operations and Maintenance Service (MBOMS) provider, manages roughly 2.5 GW of assets under maintenance, including 1,782 MW of wind, 148 MW of solar, and 572 MW of Balance of Plant (BOP) across many customer segments.

Renom Energy Services generated around ₹213 Crore in revenue for the fiscal year ending March 31, 2024. The acquisition, which is not a related party transaction, will be carried out through a sale and purchase agreement (SPA) and a shareholders’ agreement (SHA).

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