RIL Shares Trade Higher After Its New Energy Arm Acquires Faradion

Reliance Industries shares on the last trading day of the CY 2021 in line with the broader markets are trading with gains and at day's high gained by close to 0.8 percent to Rs. 2377.7 per share.

RIL Shares Trade Higher After Its New Energy Arm Acquires Faradion

In a BSE filing, the oil to telecom conglomerate announced that its wholly owned subsidiary-Reliance New Energy Solar Limited (RNESL) has entered into an agreement with Faradion Limited (Faradion) and its shareholders for acquiring 100% of the equity shares of Faradion through secondary transactions for a total value of GBP 94.42Mn based on an enterprise value of GBP 100Mn as follows: (a) 88.92% of the equity shares of Faradion for an aggregate consideration of GBP 83.97Mn at closing which is expected in early January 2022. (b) 11.08% of the equity shares of Faradion within 3 years from closing for an aggregate consideration of up to GBP 10.45Mn. RNESL has also agreed to subscribe to new equity shares of Faradion for an aggregate consideration of GBP 31.59Mn, of which GBP 25Mn is as growth capital for accelerating commercial roll out and the balance for repayment of debt and other fees.

This will further strengthen and build upon our ambition to create one of the most advanced and integrated new energy ecosystem and put India at the forefront of leading battery technologies. The sodium-ion technology developed by Faradion provides a globally leading energy storage and battery solution which is safe, sustainable, provides high energy density and is significantly cost competitive. In addition, it has wide use applications from mobility to grid scale storage and back-up power," RIL's Chairman Ambani said in a statement.

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