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Wednesday, October 27, 2021

RIL will buy 40% stake in solar company Sterling and Wilson, deal in preferential allotment and open offer

RIL’s subsidiary Reliance New Energy Solar Limited (RNESL) on October 10 announced that it will buy 40% stake in Sterling & Wilson Solar Limited (SWSL). The company has done this stake for Rs 2845 crore. Shapoorji Pallonji Group has sold stake in its solar company Sterling & Wilson Solar Limited (SWSL) to reduce debt from its balance sheet. In the last one month, the company has sold stake in its other company.

The deal between Reliance New Energy Solar Limited (RNESL) and Sterling & Wilson Solar Limited (SWSL) will be completed in two phases. Shapoorji’s company will first make a preferential allotment of 2.93 crore equity shares to Reliance New Energy Solar. This is equivalent to 15.46% stake in the company. This allotment of preferential shares will be done at Rs 375 per share with a total cost of Rs 1,100 crore.

After the preferential allotment, RNESL will take 1.84 crore equity shares i.e. 9.7% stake. The company will also take this stake at the rate of Rs 375 per share. After this the company will make a public offer for 4.91 crore shares. This equates to a 25.9% stake. Taking all this together, Reliance New Energy Solar Limited (RNESL) will take a total 40% stake in Shapoorji’s company Sterling & Wilson Solar Limited (SWSL).

The company wants to fulfill its ambitious plan of clean energy through this deal. Sterling will seek the approval of shareholders on 2 November 2021 for approval of this deal. Shares of Sterling & Wilson Solar Limited (SWSL) closed at Rs 434 on Friday.

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Sterling & Wilson Solar Limited (SWSL) is a leading solar energy, procurement and construction solutions provider company. RIL issued a statement stating that Reliance New Energy Solar Limited (RNESL) will take a stake in it. This stake-taking process will be completed through preferential allotment followed by an open offer.

The company has already taken 15.46% stake in Sterling & Wilson Solar Limited (SWSL) for around Rs 1,100 crore. Apart from this, the promoters of Sterling & Wilson Solar Limited (SWSL) Shapoorji Pallonji and Khurshid Daruwala will sell their stake to Reliance New Energy Solar (RNESL) for Rs 1.84 crore.

Khurshid Daruwala will continue to be the chairman of the board and will drive the growth of Sterling & Wilson Solar Limited (SWSL). Sterling & Wilson Solar Limited (SWSL) has a global portfolio of 11.4 GWp. This includes the world’s largest single location power plant in Abu Dhabi. In September this year, the company announced that it had received approval to set up a 66 MW solar power plant in Jordan.

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Shehnazhttps://www.businesskhabar.com/
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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