Suzlon Energy acquires 51% stake in Renom Energy; details here

Suzlon Energy on Friday announced that the company has completed the acquisition of 51 per cent of the equity share capital of Renom Energy, as of September 6.

The company further informed that with the said acquisition, Renom Energy has now become a subsidiary of company.

“In continuation to our communication dated 6th August 2024, this is to inform that the Company has, on 6th September 2024, completed the acquisition of 51% of the equity share capital of Renom. With the said acquisition, Renom has now become a subsidiary of the Company,” the company said in an exchange filing.

In August, Suzlon Energy Ltd.'s Board of Directors has approved the acquisition of a 76% stake in Renom Energy Services, valued at ₹660 crore, to be executed in two phases, as per the company's filing with the Bombay Stock Exchange.

“We hereby inform that the board of directors of Suzlon Energy Limited at its meeting held today, i.e., 6th August 2024 has, inter alia, approved the acquisition of 22,80,000 equity shares representing 76% of the equity share capital of Renom Energy Services Private Limited on a fully diluted basis, by the Company in multiple tranches,” said Suzlon in the exchange filing.

The company said the initial phase of the deal will involve Suzlon acquiring 51% of Renom's shares for ₹400 crore. Subsequently, within a period of 18 months, the energy company will purchase an additional 25% stake in Renom for ₹260 crore, as per the company's filing.

Renom Energy Services is the leading multi-brand operations and maintenance provider in the renewable energy sector, managing assets of 1,782 megawatts (MW) in wind energy, 148 MW in solar energy, and 572 MW in Balance of Plant (BOP) maintenance across various customer segments. According to the company's statement, its turnover for the financial year ending 2024 was ₹213 crore.

“With our in-house Suzlon Services Business focussed on Suzlon-make turbines and now with Renom’s focus on non-Suzlon Multi Brand Renewable Energy Assets, we are comprehensively positioned across the Indian Renewables OMS sector,” said JP Chalasani the Chief Executive Officer of Suzlon Group in the statement.

Suzlon Energy stock closed in red on Friday's trading session. The share was down 1.38 per cent at ₹74.95.