Suzlon Energy shares locked in 5% upper circuit after deal to acquire ₹660-crore stake in Renom Energy

The stock was in focus as Suzlon informed the exchanges on Tuesday, after the market hours, that it will acquire 76% stake worth ₹660 crore in Renom Energy Services Pvt Ltd.

As the trading commenced, Suzlon's shares opened in the green at ₹69 apiece on the NSE, up 4.1% as against the last closing price. The scrip climbed by 5% to ₹69.58 within two hours of trading, and was subsequently locked in the upper circuit.

Notably, the company's stock has performed strongly over the past year, rising by over 250%. Year-to-date, the stock has given returns of around 80%.

Deal to acquire Renom Energy

Suzlon Energy board on Tuesday said it will acquire a 76% stake in Renom Energy Services for ₹660 crore in two tranches from Sanjay Ghodawat Group.

The first tranche involves acquisition of a 51% stake for a consideration of ₹400 crore, a company statement said, adding in second tranche, it will acquire an additional 25% stake within 18 months from the acquisition of the first tranche for a consideration of ₹260 crore.

According to the statement, the Suzlon Group executed definitive agreements for the acquisition of the stake in two tranches, from Sanjay Ghodawat Group (SGG).

Renom is the largest multi-brand operations and maintenance service provider in the country with assets of 1,782 MW in wind, 148 MW in solar, and 572 MW in BOP under maintenance across customer segments, it stated.

The closure of the transaction is subject to the completion of certain condition precedents, it informed.

This strategic acquisition will help unlock Renom's core potential and position it from a place of strength to become a leading independent service provider and the custodian of multi-brand renewable energy assets, it pointed out.

This deal will also enable Renom to leverage the massive opportunity of targeting over 32 GW of non-Suzlon wind energy assets in the country today, it stated.

Girish Tanti, Vice Chairman, Suzlon Group, said in the statement, "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, Sanjay Ghodawat Group, said, "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."