Mahindra -; Mahindra to increase stake in ReNew Sunlight Energy to 37.2%; Stock soars ~2%

31 Mar 2022 , 12:33 PM

Mahindra & Mahindra Limited updated the exchanges that, the Company, ReNew Sunlight Energy Private Limited (RSEPL) and ReNew Green Energy Solutions Private Limited (RGESPL) have on March 30, 2022 entered into a Supplemental Share Subscription and Shareholders’ Agreement (‘Supplemental SSSSHA’).

Pursuant to the Supplemental SSSSHA and owing to the availability of a higher debt financing to RSEPL, the Company’s percentage shareholding in the Equity Share Capital of RSEPL would increase from the existing 31.2% to 37.2%. There would be no change in the total number of Equity Shares of RSEPL agreed to be subscribed by the Company.

The Company has subscribed to the balance of 80,37,000 Equity Shares of Rs10/- each of RSEPL at par for a consideration of Rs8.04 crores and the Company’s percentage shareholding in the Equity Share Capital of RSEPL has increased to 37.2%.

At around 12.36 pm, Mahindra & Mahindra Ltd was trading at Rs808 per share up by Rs14.85 or 1.87% from its previous closing of Rs793.15 per share on the BSE.

The company also signed a Power Delivery Agreement with ReNew Sunlight Energy where under RSEPL as a Captive Generator shall be supplying solar power to the Company as a Captive User.

The Company had entered into a Share Subscription and Shareholders’ Agreement (SSSHA) with RSEPL, an Associate of the Company and RGESPL) for subscribing to 1,60,74,000 Equity Shares of RSEPL, in one or more tranches, which would result in the Company holding upto 31.2% of the Equity Share Capital of RSEPL by March 31, 2022.