Reliance Industries’ new energy arm to acquire 40% stake in Sterling and Wilson Solar 


Reliance New Energy Solar Ltd, the new energy arm of Reliance Industries Ltd, has agreed to acquire a 40% stake in Indian multinational Sterling and Wilson Solar Ltd (SWSL), one of the largest PV plant engineering, procurement, construction (EPC), and operation and maintenance solution providers globally.

The move comes as Reliance New Energy Solar Ltd aspires to take the lead in enabling cost-efficient green energy by having a presence in the end-to-end PV ecosystem from vertically integrated solar component manufacturing to project development.

Reliance New Energy Solar Ltd will acquire the stake in Sterling and Wilson Solar through a combination of preferential allotment, share sale by the Shapoorji Pallonji and Company Private Limited (one of the current promoters of Sterling and Wilson Solar), and an open offer.

The agreement includes a preferential allotment of 2.93 crore equity shares (equivalent to 15.46% post preferential share capital) for INR 375.00 per share, aggregating to INR 1,098.75 crore. It also includes the acquisition of 1.84 crore equity shares from Shapoorji Pallonji and Company Private Limited (equivalent to 9.70% post preferential share capital) at a price of INR 375.0 per share, aggregating to INR 690 crore. Further, Reliance New Energy Solar will make a public announcement to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9%. 

“Reliance New Energy Solar will hold 40.0% of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and Khurshed Daruvala, and sell down, if any required,” according to the company statement.

Strategic rationale

Sterling and Wilson Solar has executed over 11 GW of solar turnkey projects globally. The company has a 3,000 strong team and presence across 24 countries and provides a comprehensive range of solar energy turnkey solutions including design, procurement, construction, project management, and operations and management.

Partnership with Sterling and Wilson Solar provides Reliance access to Sterling and Wilson’s engineering and project management skills and complement Reliance’s proven strengths in digital technology, engineering, and procurement and project execution as it aspires to become a global leader in green energy based on the latest and most cost-competitive technologies and development capabilities. 

Combined with Reliance’s announced plans to set up four state-of-the-art Giga factories in Jamnagar, Gujarat, the partnership offers a fully integrated product with unrivaled engineering capabilities.

Speaking about the transaction, Mukesh Ambani, chairman of Reliance Industries, said, “Sterling and Wilson Solar, with its engineering talent, deep domain knowledge, global presence, and experience of executing some of the most complex projects globally, will become an important part of our solar value chain. This will enable us to deliver a comprehensive, end-to-end ecosystem leading to cost-efficient green energy for Indian consumers.”

Shapoor Mistry, Chairman of Shapoorji Pallonji & Co. Pvt. Ltd, said this partnership will be beneficial to all stakeholders and will greatly contribute to making India a leading green energy powerhouse. 

Khurshed Daruvala, chairman of Sterling and Wilson Solar, said, “Reliance, with its integrated new energy vision, and a commitment to put India on the global green energy map, provides us a great opportunity to further establish SWSL as the leading EPC solutions provider globally. I am sure this partnership will give SWSL new energy and excitement, and we look forward to becoming part of creating history.”

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