Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), on Sunday executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling & Wilson Solar Ltd (SWSL) to acquire 40 per cent stake in SWSL.
The development provides a further boost to Reliance Industries’ mega plan to “deliver a comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers”.
In the company’s annual general meeting earlier this year, Reliance Industries chairman and managing director Mukesh Ambani had announced the company’s mega plan to invest Rs 75,000 crore in the next three years to set up four renewable energy giga factories in Jamnagar, Gujarat.
“Reliance is committed to making India a global leader in green energy based on the latest and most cost-competitive technologies and development capabilities,” said RIL in a statement on Sunday.
Here are top things to know about Reliance New Energy Solar’s 40% Stake Acquisition In Sterling & Wilson Solar
-Reliance Industries will acquire 40 per cent stake in Sterling and Wilson Solar through a series of primary investment, secondary purchase and open offer, the oil-to-telecom conglomerate said in a statement.
-Reliance New Energy Solar will get a preferential allotment of 2.93 crore equity shares (equivalent to 15.46 per cent of the post- preferential share capital) at a price of ₹375 per share. It will also acquire 1.84 crore equity shares or 9.70 per cent share from Shapoorji Pallonji and Company Private Ltd at the same price. Then, it will also trigger an open offer to acquire 4.91 crore equity shares of Sterling & Wilson Solar Ltd, representing 25.9 per cent, according SEBI Regulations. If it is successful, RNESL will acquire 40 per cent stake in Sterling & Wilson Solar.
– This partnership with Sterling & Wilson Solar Ltd will provide it access to world-class talent, engineering and project management skills and complement Reliance’s strengths in digital technology, engineering, and procurement and project execution.
-With 11-plus GW of solar turnkey projects executed globally and more than 5 decades of engineering experience, Sterling & Wilson Solar Ltd is a reputed international EPC and O&M service provider in the renewables sector. It is a global pure-play, end-to-end solar engineering, procurement, construction (EPC) solutions provider. It provides EPC services primarily for utility-scale solar power projects, with a focus on project design and engineering.
– AZB and K Law acted as legal advisors, Ernst and Young as the accounting and tax diligence advisor and Edelweiss as the financial advisor to Reliance. DAM Capital acted as financial advisor and Desai & Diwanji acted as legal advisor to SWSL and the selling shareholders.
“Combined with Reliance’s announced plans to set up four state of art giga factories in Jamnagar, Gujarat, the partnership offers fully integrated product with unrivaled engineering capabilities,” Reliance Industries said in a statement.
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Source: News18