Suzlon Energy to acquire 76% stake in Renom Energy for Rs 6.6 billion

Suzlon Energy Ltd board 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. The acquisition, valued at Rs 6.6 billion, will make Renom Energy Services a subsidiary of Suzlon Energy.

The initial acquisition of a 51% stake (15,30,000 equity shares) will be completed within three months for Rs 4 billion, subject to closing conditions outlined in the sale and purchase agreement (SPA). The additional 25% stake (7,50,000 equity shares) will be acquired within 18 months, either for cash or through a share swap, at Rs 2.6 billion.

Founded in 2015 by the Sanjay Ghodawat Group, Renom Energy Services is India’s largest Independent Service Provider (ISP) and Multi Brand Operations and Maintenance Service (MBOMS) provider, managing approximately 2.5 GW of assets, including 1,782 MW in the wind, 148 MW in solar, and 572 MW in Balance of Plant (BOP) across various customer segments.

For the financial year ending March 31, 2024, Renom Energy Services reported a turnover of approximately Rs 2.13 billion. The acquisition will be executed through an SPA and a shareholders’ agreement (SHA) and is not considered a related party transaction.

Shares of Suzlon Energy Ltd closed at Rs 66.26 on the BSE, down by Rs 1.65 or 2.43%.