Suzlon Energy to Acquire Rs 660 Crore Stake in Renom Energy

In a strategic move to enhance its footprint in the wind energy services sector, Suzlon Energy Ltd. has announced the acquisition of a 76% stake in Renom Energy Services Pvt. The board of directors approved this significant acquisition on Tuesday, highlighting Suzlon’s commitment to expanding its operations and maintenance services in the renewable energy market.

Suzlon’s Acquisition Strategy

Suzlon Energy Ltd. will acquire 22.80 lakh shares of Renom Energy Services Pvt. valued at Rs 660 crore on a fully diluted basis. According to an exchange filing, the acquisition will be executed in multiple tranches. Initially, Suzlon will secure a 51% stake for Rs 400 crore within approximately three months, contingent on the fulfillment of specific closing conditions under the share purchase agreement (SPA). The remaining 25% stake, worth Rs 260 crore, will be acquired within 18 months of the first stake purchase. Suzlon has the flexibility to finance this acquisition either through cash or a share swap.

Expanding Presence in Wind Energy Services

This acquisition will significantly bolster Suzlon’s presence in the non-Suzlon segment of the Indian wind energy services industry. Renom Energy Services, a multi-brand operations and maintenance service provider, manages approximately 2.5 GW of assets. This includes 1,782 MW in wind, 148 MW in solar, and 572 MW in balance of plant across various customer segments. By integrating Renom’s capabilities, Suzlon aims to enhance its service offerings and penetrate deeper into the renewable energy maintenance market.

Conclusion: Suzlon Energy’s acquisition of a majority stake in Renom Energy Services marks a strategic expansion in the renewable energy sector. This move not only strengthens Suzlon’s operational capabilities but also positions the company to better serve the growing demands of the Indian wind energy services market. The stock of Suzlon energy currently trades at Rs.69.59 per share and is up by 5% today from its previous day’s closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.