Suzlon Energy to acquire 76% stake in Renom Energy; deal worth ₹660 crore in two parts

The Board of Directors of Suzlon Energy Ltd. has approved the acquisition of 76 percent of Renom Energy Services at a transaction value of ₹660 crore across two segments, according to the company’s filing with the Bombay Stock Exchange (BSE) on Tuesday, August 6.

“This is to inform you that the Board of Directors of Suzlon Energy Limited at its meeting held today i.e. on 6th August 2024, has, inter alia, approved the acquisition by the Company of 22,80,000 ordinary shares representing 76% of the share capital of Renom Energy Services Private Limited on a fully diluted basis in multiple tranches,” Suzlon said in a stock exchange filing.

The first element of the transaction will be the acquisition of 51 percent of Renom shares by Suzlon for the amount ₹400 crore, and then within 18 months, the power company will acquire 25 per cent more stake in Renom at a price of ₹260 crore, according to company data.

Renom Energy Services is the largest multi-brand renewable energy operations and maintenance company with assets of 1,782 megawatts (MW) in the wind segment, 148 MW in the solar sector and 572 MW in BOP in maintenance across customer segments. The company’s turnover for the fiscal year ended 2024 was ₹213 crore, according to a company statement.

The company said the closing of the transaction is subject to the satisfaction of certain specified conditions.

“This strategic acquisition will help unlock Renom’s core potential and position it from a position of strength to become a leading independent service provider (ISP) and custodian of multi-brand renewable energy assets,” Suzlon said. The deal will also provide Suzlon with the opportunity to leverage 32 gigawatts (GW) of non-Suzlon wind energy assets in India, they said.

“With our in-house Suzlon Services business focused on Suzlon branded turbines and now Renom’s focus on non-Suzlon multi-brand renewable energy assets, we are comprehensively positioned in the Indian renewable OMS sector,” JP Chalasani, CEO, Suzlon Group, said in a statement.

Suzlon Energy shares ended the day down 2.43%. ₹66.26 after Tuesday’s market session compared to ₹67.91 at previous market close. The takeover announcement was made after market hours.