Reliance Industries’ subsidiary Reliance New Energy Solar Limited today said it will acquire a 40 percent stake in renewables firm Sterling and Wilson Solar through a combination of preferential allotment, share sale by the promoter and open offer. RNESL will pay Rs 1790 crore for the preferential allotment and the purchase of shares from the promoter, totalling 22.16 percent. The open offer for the remaining portion will be done at a price according to sebi regulations.
RNESL said 15.46 percent will be acquired through a preferential allotment of 2.93 crore equity shares by Sterling and Wilson, at Rs 375 per share, totalling Rs 1100 crore. Around 9.7 percent will be through acquisition of promoter Shapoorji Pallonji and Company Private Limited’s shares for Rs 690 crore at Rs 375 per share.
Sterling and Wilson shares closed at Rs 434.80 on Friday, up 7 percent over their previous close.
The company has executed 11-plus GW of solar turnkey projects globally and is a leading and highly reputed international Engineering Projects and Construction (EPC) and Operation and Maintenance service provider in the renewables sector, RNESL said in its release.
It has a 3,000 strong team and presence across 24 countries, and provides a comprehensive range of solar energy turnkey solutions including design, procurement, construction, project management and operations and management, the release added.
This is the second acquisition announced by RNESL today and is part of Reliance Industries initiatives to make India a global leader in green energy
“This partnership with SWSL will provide it access to world-class talent, engineering and project management skills and complement Reliance’s proven strengths in digital technology, engineering, and procurement and project execution - all key ingredients required to deliver high quality, costefficient and time-bound implementation of giga-scale green energy capacity, in India and across the world,” the release said.
Speaking about the acquisition, Mukesh Ambani, Chairman of Reliance Industries, said, “We welcome SWSL as a strategic partner towards building our New Energy platform. SWSL, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain. This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers.
We have great respect for Khurshed Daruvala and the world-class institution that he has built over the years and look forward to collaborating in making SWSL a global EPC and O&M leader.”
Shapoor Mistry, Chairman of Shapoorji Pallonji and Co. said: “We are happy to welcome Reliance in Sterling and Wilson Solar Ltd. Through the decades, spanning three generations, the Shapoorji Pallonji group has helped Sterling and Wilson become a global leader in providing turnkey solutions in the energy value chain. SWSL is now well-poised to make a valuable contribution, as the world transitions to a low-carbon economy. I believe this partnership is beneficial to all stakeholders and will greatly contribute to making India a leading green energy powerhouse.”
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First Published: IST