The existing shareholders of ReNew, including Goldman Sachs, the Canada Pension Plan Investment Board (CPP Investments), Abu Dhabi Investment Authority, and JERA, will be issued shares of the SPAC at $10 per scrip.
About $345 million of cash is held in trust by RMG II.
Laying the groundwork for publicly listing itself in the United States, ReNew Power has entered into an agreement with RMG Acquisition Corporation II (RMG II) which is a special purpose acquisition company (SPAC). After the expected closure of the transaction in June-end, ReNew will be listed on the Nasdaq under the ticker symbol ‘RNW’.
A SPAC — also called a ‘blank check company’ — is a firm already listed in a stock exchange which helps a company go public, bypassing the initial public offering procedure. The deal gives an enterprise value of $8 billion to ReNew Power. The existing shareholders of ReNew, including Goldman Sachs, the Canada Pension Plan Investment Board (CPP Investments), Abu Dhabi Investment Authority, and JERA, will be issued shares of the SPAC at $10 per scrip.
The combined entity gets $1.2 billion proceeds from the deal, of which $855 million has come from new marquee investors including BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management, TT Environmental Solutions Fund and Zimmer Partners. About $345 million of cash is held in trust by RMG II.
The fully diluted market capitalisation of the combined company would be approximately $4.4 billion, assuming no RMG II shareholders exercise their redemption rights. “The transaction re-emphasises strong investor interest in Indian renewable energy sector with massive growth potential,” said Gaurav Singhal, managing director, India investment banking at Bank of America.
ReNew is currently the only company in the Indian renewable energy sector with over 5 giga-watt (GW) of operational solar and wind power plants, and has an aggregate capacity of close to 10 GW including contracts already won in competitive bids. “Over time, we will expand our capabilities even further, with utility-scale battery storage, and customer focused intelligent energy solutions,” Sumant Sinha, CEO, ReNew Power said. Sinha will remain the CEO of the combined company, and its board of directors will include representation from ReNew’s existing stockholders, RMG II and independent directors.