Suzlon Energy to acquire 76% stake in Renom Energy

Renewable energy solutions provider Suzlon Energy Ltd on Tuesday (August 6) announced that its board of directors has approved the acquisition of 22,80,000 ordinary shares, representing 76% of the share capital of Renom Energy Services Private Ltd, in multiple tranches.

According to a document filed with the stock exchanges, the board of directors of Suzlon Energy Limited has approved the acquisition 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 Energy will acquire Renom Energy Services for ₹660 crore, making it a subsidiary of the company. The initial acquisition of 51% stake (15,30,000 equity shares) is expected to be completed within three months, subject to closing conditions specified in the SPA.

Suzlon Energy will pay ₹400 crore for the initial stake. Additional 25% stake (750,000 equity shares) will be acquired over 18 months for ₹260 crore, in cash or through share exchange.

Renom Energy Services, India’s largest multi-brand maintenance and operations services (MBOMS) provider, manages assets of approximately 2.5 GW, including 1,782 MW of wind, 148 MW of solar and 572 MW of balance of power (BOP) across multiple customer segments.

Renom Energy Services generated approximately ₹213 crore in revenue during the financial year ending March 31, 2024. The acquisition, which is not a related party transaction, will be effected through a sale and purchase agreement (SPA) and a shareholders’ agreement (SHA).

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