Renewable energy solutions provider – Suzlon Energy, has signed definitive agreements to acquire a stake in Renom Energy Services Private Limited from the Sanjay Ghodawat Group (SGG).
Suzlon Renom Energy Services stake
The board of directors of the company announced that the company will acquire a 76 per cent stake in Renom Energy Services for Rs 660 crore in two tranches from Sanjay Ghodawat Group.
The first tranche involves acquisition of a 51 per cent stake for a consideration of Rs 400 crore.
Meanwhile, in the second tranche, Suzlon will acquire an additional 25 per cent stake within 18 months from the acquisition of the first tranche for a consideration of Rs 260 crore.
This means, the company will acquire a 76% stake in the company for Rs 660 crores.
“…the board of directors (“Board”) of Suzlon Energy Limited (the “Company”) at its meeting held today, i.e., 6th August 2024 (which commenced at 7.00 p.m. IST and concluded at 7.40 p.m. IST) has, inter alia, approved the acquisition of 22,80,000 equity shares representing 76% of the equity share capital of Renom Energy Services Private Limited,” said the company in an exchange filing.
“The cost of acquisition of 51% stake (15,30,000 equity shares) is Rs.400,00,00,000/- payable in accordance with the terms of the SPA,” said Suzlon in an exchange filing.
“The cost of acquisition of the remaining 25% stake (7,50,000 equity shares) is Rs.260,00,00,000/- payable in accordance with the terms of the SPA. This needs to be acquired within a period of 18 (eighteen) months from acquisition of 51% stake,” added the company.
Meanwhile, the closure of the transaction is subject to the completion of certain condition precedents.
About Renom Energy Services
Renom is a multi-brand operations and maintenance service provider in the country with assets of 1,782 MW in wind, 148 MW in solar, and 572 MW in BOP under maintenance across customer segments.
Girish Tanti, Vice Chairman, Suzlon Group, said in the statement, “This acquisition aligns with Suzlon Group’s vision of leveraging growth while safeguarding our country’s renewable energy assets, irrespective of their original make.”
“This strategic move not only provides Renom the platform to grow alongside the Suzlon Group but also allows SGG to focus on its core verticals of aviation, education, consumer products, and retail,” said Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group.
Suzlon share price today
On Tuesday, Suzlon shares closed at Rs 66.26 per share, down 2.43 per cent from the previous close of Rs 67.91 per share. The stock opened at Rs 68.21 per share, and hit an intraday high of Rs 70.90 per share and low of Rs 65.66 per share on BSE.
