Suzlon to Buy 76% Stake in Renom Energy for INR 660 Crore

Suzlon Energy's board announced on Tuesday that it will acquire a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group for Rs 660 crore. The acquisition will occur in two phases: the first tranche involves purchasing a 51% stake for Rs 400 crore, followed by an additional 25% stake within 18 months for Rs 260 crore.

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Suzlon's Strategic Acquisition

The Suzlon Group has signed definitive agreements to acquire the stake in Renom Energy Services Pvt Ltd from the Sanjay Ghodawat Group. Renom is India's largest multi-brand operations and maintenance service provider, managing assets of 1,782 MW in wind, 148 MW in solar, and 572 MW in BOP across various customer segments.

The transaction's completion is contingent upon fulfilling certain conditions, according to the company statement. This acquisition aims to unlock Renom's core potential and position it as a leading independent service provider and custodian of multi-brand renewable energy assets.

Opportunities and Growth

This deal will enable Renom to target over 32 GW of non-Suzlon wind energy assets currently available in India. Girish Tanti, Vice Chairman of Suzlon Group, stated, "This acquisition aligns with Suzlon Group's vision of leveraging growth while safeguarding our country's renewable energy assets, irrespective of their original make."

Shrenik Ghodawat, Managing Director of Sanjay Ghodawat Group, commented on the strategic move: "This strategic move not only provides Renom the platform to grow alongside the Suzlon Group but also allows SGG to focus on its core verticals of aviation, education, consumer products, and retail."

Renom's extensive portfolio includes wind and solar assets under maintenance across different customer segments. This acquisition is expected to strengthen its position in the renewable energy sector significantly.

The first phase of the acquisition involves a substantial investment of Rs 400 crore for a majority stake. The second phase will see an additional Rs 260 crore investment within 18 months, completing the total acquisition.

By acquiring Renom Energy Services, Suzlon aims to enhance its capabilities and expand its reach in the renewable energy market. This strategic move is seen as a significant step towards achieving Suzlon's long-term goals.

The acquisition is expected to bring substantial benefits to both companies. It will allow Renom to leverage Suzlon's expertise and resources while enabling Suzlon to expand its footprint in the renewable energy sector.

The deal underscores Suzlon's commitment to strengthening its position in the renewable energy market. By acquiring a majority stake in Renom Energy Services, Suzlon aims to become a leading independent service provider for multi-brand renewable energy assets.

Renom's assets under maintenance include significant capacities in wind and solar energy. This acquisition will enable Suzlon to tap into these assets and enhance its service offerings.

The transaction is subject to certain conditions being met before it can be finalized. Both companies are working towards completing these requirements to ensure a smooth transition.

This strategic acquisition marks a significant milestone for Suzlon as it continues to expand its presence in the renewable energy sector. The company remains committed to leveraging growth opportunities while safeguarding India's renewable energy assets.

Renom Energy Services' extensive portfolio and expertise make it a valuable addition to Suzlon's operations. The acquisition is expected to drive growth and enhance Suzlon's capabilities in managing multi-brand renewable energy assets.

In summary, this acquisition represents a strategic move by Suzlon Energy to strengthen its position in the renewable energy market. By acquiring a majority stake in Renom Energy Services, Suzlon aims to leverage growth opportunities and expand its service offerings across various customer segments.