Suzlon Energy to Acquire Majority Stake of 76% in Renom Energy Worth INR 660 Crore Suzlon Energy's board of directors have given the green signal to acquire a 76 per cent majority stake in Renom Energy worth INR 660 crore in two tranches
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Suzlon Energy Ltd. is set to acquire a majority stake in Renom Energy. The former's board of directors have approved the acquisition of 22,80,000 equity shares representing 76 per cent of the equity share capital of Renom Energy Services Private Limited. The deal is prepared to be executed in two tranches with a combined value reaching INR 660 crore as per a regulatory filing. The first tranche involves the acquisition of a 51 per cent stake for a consideration of INR 400 crore. In the second tranche, Suzlon will acquire an additional 25 per cent stake within 18 months from the acquisition of the first tranche for a consideration of INR 260 crore.
Girish Tanti, vice chairman, Suzlon Group, commented on the acquisition, "Renom has emerged as a single largest player in this domain with great strength and potential to tap further into this market segment. This acquisition aligns with Suzlon Group's vision of leveraging growth while safeguarding our country's renewable energy assets, irrespective of their original make."
Post the acquisition, Renom Energy will continue to operate as an independent board-managed ISP (Independent Service Provider). Renom has 2.5 GW of assets under management along with 30 per cent CAGR (compound annual growth rate) in fleet growth since FY20. The company also has expertise to capture the 32 GW and growing non-Suzlon wind turbine services segment with 850+ skilled man power. With India's target to achieve 500 GW of renewable energy installations by 2030, the country is set to witness a multitude of different technologies and wind turbines of various makes in the market going ahead.
"With our in-house Suzlon Services Business focussed on Suzlon-make turbines and now with Renom's focus on non-Suzlon Multi Brand Renewable Energy Assets, we are comprehensively positioned across the Indian Renewables OMS sector. We intend to support and strengthen Renom further as a standalone ISP to help provide best-in-class customer service to all multi-make customers in the wind energy O&M space," added JP Chalasani, chief executive officer, Suzlon Group.
