“Reliance New Energy Solar Limited (RNESL), a wholly-owned subsidiary of Reliance Industries, on Sunday executed definitive agreements with Shapoorji Pallonji and Company Private, Khurshed Daruvala and SWSL to acquire 40 per cent stake in the latter,” RIL said.
Following the announcement, shares of Sterling Wilson Solar were up 12.51 per cent at Rs 489.20.
RNESL will acquire the stake in a series of transactions including fresh issue, share buying from promoters and shareholders and an open offer.
The company said it will subscribe to 2,93,33,333 equity shares of SWSL at a price of Rs 375 per share aggregating to Rs 1,099 crore. It will also purchase 1,84,00,000 equity shares from Shapoorji Pallonji, one of the current promoters of SWSL, at a price of Rs 375 per share for a total of Rs 690 crore.
Besides, it will acquire up to 4,91,37,420 shares for a total of Rs 1,842 crore from public shareholders through an open offer. The prices of open offer will also be the same – Rs 375 per share. It will acquire the rest of the shares from Khurshed Daruvala, current promoters of SWSL at the same price.
“The consideration for the above subscription, purchase and acquisition in the open offer will be paid in cash and the company will provide the funding to RNESL for the above acquisition and will be a PAC with RNESL for the acquisition,” Reliance Industries said.
SWSL was incorporated in India on March 9, 2017. The consolidated turnover of SWSL for FY21, FY20 and FY19 was Rs 5,080.80 crore, Rs 5,575.29 crore and Rs 8,240.41 crore, respectively.
The acquisition is subject to approval from the Competition Commission of India, Securities and Exchange Board of India and company shareholders.
