Stocks

Sterling and Wilson Solar hits fresh highs as Reliance New Energy Solar to buy 40% stake

Our Bureau Mumbai | Updated on October 11, 2021

At 9:37 am, SWSL was trading at ₹ 491.65 on the BSE, up ₹ 56.85 or 13.07 per cent

The shares of Sterling and Wilson Solar Ltd (SWSL) recorded fresh highs during the early trade on Monday after Reliance New Energy Solar Ltd, a wholly-owned unit of Mukesh Ambani-led Reliance Industries Ltd, announced plans to buy a 40 per cent stake in the Shapoorji Pallonji-backed company for ₹ 2,845 crore.

At 9:37 am, SWSL was trading at ₹491.65 on the BSE, up ₹ 56.85 or 13.07 per cent. It recorded a fresh 52-week high of ₹509.00. It had opened at ₹485.00 as against the previous close of ₹ 434.80. It hit an intraday low of ₹ 445.80.

On the NSE, it was trading at ₹ 494.60, up ₹ 59.55 or 13.69 per cent. It recorded a fresh year-high of ₹ 509.10.

Reliance New Energy Solar Ltd on Sunday announced that it has executed definitive agreements with Shapoorji Pallonji and Company Private Ltd (SPCPL), Khurshed Daruvala and Sterling and Wilson Solar Ltd to acquire 40 per cent stake post-money in SWSL.

The deal involves a preferential allotment of 2.93 crore equity shares, equivalent to 15.46 per cent post preferential share capital, at a price of ₹ 375 a share for ₹ 1,100 crore. It will then purchase 1.84 crore equity shares from SPCPL, equivalent to 9.70 per cent post preferential share capital at ₹375 a share.

This will be followed by an open offer to the public shareholders of SWSL to acquire up to 4.91 crore equity shares of SWSL, representing 25.9 per cent in accordance with SEBI Takeover Regulations.

Reliance New Energy Solar will hold 40 per cent of the equity capital of SWSL, consequent to acquisition in the open offer, follow-on acquisition of shares from SPCPL and the other promoter Khurshed Daruvala, and sell down, if required.

Separately, Reliance New Energy Solar Ltd has also announced the acquisition of 100 per cent shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an Enterprise Value of $771 million.

Overall, Reliance New Energy has announced two acquisitions for nearly ₹ 8,600 crore on Sunday as part of its ₹75,000-crore green energy transition plan.

The shares of Reliance Industries were trading at ₹ 2,695.70 on the BSE, up ₹ 24.85 or 0.93 per cent. It had opened at ₹ 2,724.70 as against the previous close of ₹2,670.85. It hit an intraday high of ₹ 2,724.70 and a low of ₹ 2,690.10.

On the NSE, it was trading at ₹ 2,058.45, up ₹28.65 or 1.41 per cent.

Published on October 11, 2021

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