Suzlon to acquire 51% stake in Renom Energy Services for Rs 400 crore

Renom is the largest Multi Brand Operations and Maintenance service (“MBOMS”) 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 (representative image)

Suzlon Group, India's largest renewable energy solutions provider, said on August 6 that it has signed definitive agreements for the acquisition of a 76 percent stake in Renom Energy Services Private Limited, in two tranches, from the Sanjay Ghodawat Group (SGG).

The first tranche involves the acquisition of a 51 percent stake for a consideration of Rs 400 crore, Suzlon said in a press release. In the second tranche, Suzlon will acquire an additional 25 percent stake within 18 months from the acquisition of the first tranche for a consideration of Rs 260 crore.

Renom is the largest Multi Brand Operations and Maintenance service (“MBOMS”) 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, according to the press release.

"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 (ISP) and custodian of multi brand renewable energy assets. 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," Suzlon said in the press release.

Commenting on the acquisition, Girish Tanti, Vice Chairman, Suzlon Group, said: “With India’s target to achieve 500 GW of renewable energy installations by 2030, we shall see a multitude of different technologies and wind turbines of various makes in the market going ahead. Renom has emerged as a single largest player in this domain with great strength and potential to tap further into this market segment. This acquisition aligns with Suzlon Group’s vision of leveraging growth while safeguarding our country’s renewable energy assets, irrespective of their original make.”

The closure of the transaction is subject to the completion of certain condition precedents, Suzlon said.