Renewable energy solutions provider Suzlon Group on Tuesday said it has executed definitive agreements to acquire 76% stake in Renom Energy Services Private Limited from the Maharashtra-based Sanjay Ghodawat Group.
The acquisition will be done in two tranches. The first tranche involves the acquisition of a 51% stake for a consideration of Rs 400 crore. In the second tranche, Suzlon will acquire an additional 25% stake within 18 months from the acquisition of the first tranche for a consideration of Rs 260 crore.
“The closure of the transaction is subject to the completion of certain condition precedents,” Suzlon Energy said in a press statement, adding that the acquisition will help unlock Renom’s core potential and position it from a place of strength to become a leading independent service provider (ISP) and custodian of multi-brand renewable energy assets.
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 balance of plant (BOP) under maintenance across customer segments.
“This acquisition aligns with Suzlon Group’s vision of leveraging growth while safeguarding our country’s renewable energy assets, irrespective of their original make,” said Girish Tanti, Vice Chairman, Suzlon Group.
The company said Renom’s successful track record with a meaningful presence in terms of fleet size makes it a strong contender for capturing the upcoming opportunities in the wind energy operations and maintenance (O&M) industry as an ISP. Renom maintains a diverse portfolio of 15 brands and 35 models, totaling 20,000MW across 7 states and 70 locations. It has an in-house Electronic Repair Service (ERS) Centre in Pune, ensuring swift repairs for various components. The Sanjay Ghodawat Group has businesses across aviation, education, consumer products, and retail segments.
“We intend to support and strengthen Renom further as a standalone ISP to help provide best-in-class customer service to all multi-make customers in the wind energy O&M space,” said JP Chalasani, Chief Executive Officer, Suzlon Group.
On Tuesday Suzlon’s scrip ended at Rs 66.26, down 2.43% on the BSE.
