Reliance Industries said on Sunday that its wholly owned subsidiary Reliance New Energy Solar Ltd will buy a 40% interest in Sterling & Wilson Solar Ltd (SWSL), a worldwide pure-play, end-to-end solar engineering, procurement, and construction (EPC) solutions provider (RNESL).
RNESL stated in a statement that it has signed formal agreements with Shapoorji Pallonji and Firm Private Ltd (SPCPL), SWSL, and its chairman Khurshed Daruvala to acquire a 40% interest in the company through a series of transactions.
The purchase would help Reliance achieve its goal of establishing and enabling up to 100 GW of solar energy in India by 2030, and becoming a worldwide player in the renewable industry.
The RIL unit would purchase a 15.46 percent interest in the firm through a preferential allocation of 2.93 crore equity shares at a price of Rs 375 per share, as well as 1.84 crore equity shares from the company’s promoter SPCPL for the same price.
Following that, RNESL would launch an open offer to SWSL’s public shareholders for up to 4.91 crore equity shares, representing a 25.9% interest, in accordance with the Securities and Exchange Board of India’s regulations (SEBI).
“RNESL will own 40% of SWSL’s equity capital as a result of the open offer, follow-on acquisitions of shares from SPCPL and Khurshed Daruvala, and any necessary sell-downs,” RIL said in a statement.
Daruvala will remain chairman of the board and lead SWSL into the next phase of expansion, according to the company.
SWSL specialises in EPC services for utility-scale solar power projects, focusing on project design and engineering, and oversees all elements of project execution from conception to commissioning. It has completed projects all around the world and has more than 11.4 GWp of solar power installations to its name.
It also provides operations and maintenance (O&M) services, including for third-party-built projects, and presently maintains an 8.8 GWp portfolio. SWSL has activities throughout India, Southeast Asia, the Middle East, Africa, Europe, the Americas, and Australia, and is present in 24 countries.
The purchase is part of RIL’s green energy drive. The firm stated earlier today that RNESL has purchased a 100% interest in REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd for $771 million.
“Reliance is dedicated to making India a global leader in green energy via the use of cutting-edge, cost-effective technology and development capabilities.”
SWSL’s collaboration will provide it access to world-class personnel, engineering, and project management capabilities, complementing Reliance’s established strengths in digital technology, engineering, procurement, and project execution “According to the press release.
The alliance, when combined with Reliance’s ambitions to build four state-of-the-art mega plants in Jamnagar, Gujarat, delivers a completely integrated product with unparalleled technical skills.
“SWSL will become an essential component of our solar value chain because of its engineering skills, deep domain understanding, worldwide presence, and experience implementing some of the world’s most difficult projects. RIL Chairman Mukesh Ambani stated, “This will enable us to offer our entire, end-to-end ecosystem leading to cost-effective green energy for Indian customers.”