Reliance Bought 40 Percent Stake In Sterling & Wilson Solar

Reliance bought 40 percent stake in Sterling & Wilson Solar, a deal done for Rs 3,630 crore.

After the acquisition of REC Solar, Reliance Industries Limited (RIL) on Sunday bought a 40 percent stake in Sterling & Wilson Solar for Rs 3,630 crore.

The company is a joint venture between the Shapoorji Pallonji (SP) Group and the Khurshid Yajdi Daruwala family.

With this multi-stage deal, SP Group has sold its second significant asset within a month.

Earlier, the group had signed a deal worth Rs 4,400 crore with US private equity firm Advent International for Eureka Forbes.

This acquisition has also been done by Reliance through its wholly-owned subsidiary, Reliance New Energy Solar. Under this deal, two members of Reliance will be included in the board.

In the first phase of the deal, Reliance New Energy Solar will get a preferential allotment of 2.93 crore equity shares (equivalent to 15.46 percent stake) at Rs 375 per share.

Thereafter, Reliance New Energy Solar will acquire 1.84 crore shares or a 9.7 percent stake on a preferential basis from Shapoorji Pallonji & Co.

In the third phase, a public offer will be made for the acquisition of 4.91 crore shares, which will be equivalent to a 25.9 percent stake, as per SEBI’s takeover rules.

The deal will help the SP Group reduce debt. The group currently has a debt of about 20 thousand crores.

Earlier there was an announcement to buy REC shareholding.

Earlier, Reliance New Energy Solar Limited (RNESL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), announced the purchase of a 100% stake of REC Solar Holdings AS (REC Group) from China National Bluestar (Group).

The deal is settled at an enterprise value of USD 771 million. Speaking on the acquisition, Mukesh Ambani, Chairman, Reliance Industries Ltd. said:

“I am extremely pleased with the acquisition of REC as it will help harness the unlimited and year-round solar power of Sun.”

This acquisition will be done before the end of the decade.

This is in line with our strategy to invest in new and advanced technologies and operational efficiencies, to achieve Reliance’s goal of creating 100 GW of clean and green energy.

Hon’ble Prime Minister Narendra Modi’s target of 450 GW of renewable energy in India by 2030.

production and this will be the single largest contribution by a single company to achieve this. It will help India overcome the climate crisis and become a world leader in green energy.”