Four major investors in Nasdaq-listed ReNew Energy Global have offered to take the company private. The group, which owns 64% of the fully diluted public shares, is offering other shareholders of the company – whose market capitalisation stood at $2.37 billion as of last close, $7.07 per share, a premium of 11.5% to the stock’s last close.
The group comprises Renew’s founder and chairman, Sumant Sinha, Canada Pension Plan Investment Board, Abu Dhabi Investment Authority’s subsidiary Platinum Hawk, and Abu Dhabi Future Energy Company PJSC-Masdar.
The move may be a precursor to a listing in India , sources said. “They could raise equity here or raise debt. However no decision has been made ,” sources said. An email sent to company did not elicit any response till the time of going to the press.
The ReNew board has formed a special committee led by Manoj Singh, the lead independent director, consisting of the six independent non-executive ReNew directors to consider the non-binding proposal. An independent financial advisor, Rothschild & Co and independent legal counsel, Linklaters LLP will assist the committee.
A statement by ReNew said on Wednesday while the special committee’s evaluations are underway, the executive management’s primary focus will be to continue to ensure the effective management of the company and in addition, contribute to the evaluation process, as required by the committee.
Renew was listed on Nasdaq in 2021. It has a portfolio of 10.3 Gigawatt of operational assets in wind, solar, hybrid. it aims to double capacity by 2030.
“It makes sense for them to list in India because of the country’s huge focus on renewable energy, and domestic investors also like the space,” said a analyst who did not want to be quoted.
India has set a target of 500 GW of renewable energy by 2030. Its total renewable energy installed capacity surged by 24.2 GW (13.5%) in just one year, reaching 203.18 GW in October 2024, up from 178.98 GW in October 2023.
“This proposal reflects Masdar’s positive assessment of the strength of India’s renewable sector and would provide capital investment to support the country’s energy transition,” the UAE government-owned renewable energy company said in a statement.
Renew shares have fallen about 36% since listing in February 2021.