Reliance Industries announced on Sunday that its subsidiary would acquire a 40% stake in Sterling & Wilson Solar Ltd. through a combination of primary investment, a secondary purchase, and an open offer for approximately Rs 2,850 crore. It happened just hours after announcing the acquisition of REC Solar Holdings for $771 million.
Reliance New Energy Solar Ltd (RNESL), a Reliance Industries subsidiary, would initially purchase 15% of Sterling & Wilson through a preferential issuance of 29.3 million equity shares (equal to 15.46% post preferential share capital) for Rs 375 per share. RIL would also purchase 18.4 million equity shares from SP group business RNESL (equal to 9.7 percent post preferential share capital) for Rs 375 per share. This will cost RIL around Rs 1,100 crore.
In addition, the business will buy a 25.9% share through an open offer at the same price. However, because S&W Solar’s current market price is Rs 435 a share, stockholders may not tender shares at the offer price. RNESL will own 40% of SWSL’s equity capital due to the open offer, a follow-on acquisition of shares from SPCPL, and the company’s chairman and co-founder, Khurshed Daruvala, a sell-down if necessary. The proprietors hold 69.36% of the business, with a market capitalization of Rs 6,972 crore as of Friday.
