Shares of Suzlon Energy rose by 4% in early trading on Wednesday following the announcement of its acquisition of a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group. As of 9:40 AM, the shares were trading 3.89% higher at ₹68.85.
Acquisition Details
- First Tranche: Suzlon will acquire a 51% stake for ₹400 crore in cash.
- Second Tranche: The remaining 25% will be acquired within 18 months either in cash or through a share swap.
- Valuation: The first tranche is valued at ₹784 crore, and the second tranche at ₹1,040 crore.
- Cash Balance: Suzlon had a cash balance of ₹1,100 crore at the end of the June quarter.
Impact and Expansion
Renom Energy Services specializes in the operations and maintenance of wind turbines and solar assets, managing approximately 2.5 GW of assets across India. This acquisition expands Suzlon’s reach into non-Suzlon segments like wind energy services.
| Metric | Value |
|---|---|
| Stake Acquired (First Tranche) | 51% for ₹400 crore |
| Stake Acquired (Second Tranche) | 25% in 18 months |
| Valuation (First Tranche) | ₹784 crore |
| Valuation (Second Tranche) | ₹1,040 crore |
| Cash Balance (June Quarter) | ₹1,100 crore |
| Share Price (as of 9:40 AM) | ₹68.85 (3.89% higher) |
Suzlon’s strategic move to acquire Renom Energy Services not only breaks a two-day losing streak in its stock but also marks its entry into broader segments within the renewable energy sector.
