It’s Shopping Sunday For Reliance With 40% Stake in Sterling And Wilson Solar

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In a Stock exchange filing today, Sterling and Wilson Solar has informed the exchange about the signing of definitive agreements by Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries Ltd (Reliance), and Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling and Wilson Solar Ltd (SWSL) to acquire 40.0% stake post-money in SWSL
through a series of the following transactions:

a) Preferential allotment of 2.93 crore equity shares (equivalent to 15.46% post preferential share capital) at a price of Rs. 375.00 per share;

b) Acquisition of 1.84 crore equity shares by RNESL from SPCPL (equivalent to 9.70% post preferential share capital) at a price of Rs. 375.0 per share;

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c) Public Announcement by RNESL to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9% in accordance with SEBI takeover Regulations;

d) RNESL will hold 40.0% of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required.

With 11-plus GW of solar turnkey projects executed globally and more than 5 decades of engineering experience, SWSL has been a  global success story in the solar EPC and O&M space from India. The company has a 3,000 strong team and presence across 24 countries, and it provides a comprehensive range of solar energy turnkey solutions including design, procurement, construction, project management and operations and management.

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Daruvala will continue to be chairman of the board and lead the next phase of growth for SWSL, it added.

The acquisition comes hours after RIL’s announcement of Reliance New Energy Solar Ltd (RNESL)’s acquisition of 100 per cent stake in REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd for an enterprise value of $771 million. Combined with Reliance’s plans to set up four state of art giga factories in Gujarat’s Jamnagar, the partnership offers fully integrated product with unrivaled engineering capabilities.

“SWSL, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain. This will enable us to deliver our comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers,” RIL Chairman Mukesh Ambani said.

The SWSL acquisition fits in nicely with the group’s plans to power 100 GW through solar by 2030, an announcement Reliance Chairman Mukesh Ambani made at its AGM this year. It also marks a fresh chapter for SWSL’s public market experience, which has been chequered, to say the least. From an IPO in  August 2019 at Rs 780, to a sale of 40% at Rs 375 has been a tumultous journey for the firm, racked as it has been with unexpected disruptions. It recently announced forays into waste to energy and more categories in the green transition space.