Mukesh Ambani Acquires 2 Solar Energy Firms

Reliance Industries is buying Sterling and Wilson Solar from its promoters. The company is taking this big move to leap forward towards its renewable energy foray.

Shapoorji Pallonji & Co. Pvt. Ltd and Khurshed Yazdi Daruvala, promoter-shareholders of Sterling and Wilson Solar, cumulatively own 69.36% of the company, with the public owning the rest. The promoters had raised Rs 2,850 crore from the public through an IPO in 2019, but subsequently failed to repay the loans of the company a year later, though it was promised in the prospectus.

This created a future among shareholders who demanded an exit for their investments citing a breach of trust. Reliance New Energy Solar Ltd an owned arm of Reliance Industries will be issued fresh shares of Sterling and Wilson as a preferential allotment of 2.93 crore shares at Rs 375/share, representing 15.46% of the company’s expanded equity base.

The remaining 9.70% of the company will be acquired by RNESL from Shapoorji Pallonji & Co. Pvt. Ltd at the same price. It will also accelerate an open offer for an additional 25.7% of the company as per Indian takeover regulations. If the company is successful, RNESL will hold a 40% stake involving a total payout of Rs 3630 crore.The market capitalisation of Sterling and Wilson Solar as of Friday was Rs 6,972.45 crore. The company had a consolidated net loss of Rs 76.02 crore against a net profit of Rs 17.22 crore in the quarter that ended on June 30, 2021.