Reliance New Energy Solar acquires 40 percent stake in Sterling & Wilson Solar

The announcement came hours after the acquisition of 100 per cent shareholding of REC Solar from China National Bluestar (Group) Co Ltd for an enterprise value of US$ 771 million

The acquisition will be through a combination of primary investment, secondary purchase and open offer.

The RNESL will acquire 15.46 percent in Sterling & Wilson Solar Ltd (SWSL) by way of preferential allotment of 2.93 crore equity shares (equivalent to 15.46% post preferential share capital) at a price of Rs 375.0 per share.

RNESL will also acquire 1.84 crore equity shares from SPCPL (equivalent to 9.70 percent post preferential share capital) at a price of Rs. 375.0 per share. The company will further acquire up to 4.91 crore equity shares of SWSL, representing 25.9 percent by way of the public offer.

RNESL will hold 40 per cent of the equity capital of SWSL, consequent to acquisition in the open offer, and follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down if any required.

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 in 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."

Shapoor Mistry, Chairman of Shapoorji Pallonji and Co Pvt Ltd, said, “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.”