Shares of Suzlon Energy will be focused during the trading session on Wednesday after the company announced to acquire 76 per cent equity share capital of Renom Energy Services in multiple tranches. The company informed the exchanges through a filing yesterday.
Renom Energy Services is an entity of Sanjay Ghodawat Group. It is the largest multi-brand operations and maintenance service (MBOMS) provider in the country with about 2.5 GW assets under maintenance consisting of 1,782 MW in Wind, 148 MW in Solar and 572 MW in BOP across customer segments. Its turnover stood at Rs 213 crore for the year ended on March 31, 2024.
The proposed acquisition shall be done in two tranches, where 51 per cent stake or 15,30,000 equity shares is expected to be completed in about three months, while the additional stake of 25 per cent or 7,50,000 equity shares will be acquired within 18 months from the completion of the first tranche.
The total consideration for the 76 per cent stake, or 22,80,000 equity shares shall be done for a consideration of Rs 660 crore, where Rs 400 crore shall be payable for the first tranche of 51 per cent and remaining 260 crore shall be payable on the acquisition of remaining 25 per cent stake in the company.
Shares of Suzlon Energy settled at Rs 66.26 on Tuesday, falling 2.43 per cent for the day. The total market capitalization of the company stood little more than 90,000 crore for the day.
Upon completion of the acquisition of Renom Energy Services, the company shall become a subsidiary of Suzlon Energy Ltd. In this regard, the Board has approved the execution of a sale and purchase agreement (SPA) and a shareholders’ agreement (SHA), said the exchange filing.
The strategic acquisition of renewable energy services player gives Suzlon Group comprehensive presence and penetration in the non-Suzlon segments of the Indian wind energy services industry, said the filing. Renom Energy Services was founded in 2015 by the Sanjay Ghodawat Group.