Reliance Buys 40% Stake in Shapoorji Pallonji Group’s Solar?Unit

Reliance Industries Ltd announced its buying of 40% stake in Sterling & Wilson Solar Ltd, a Shapoorji Pallonji group (SP group) company, for about ?2,845 crore. The acquisitions come in quick succession after Ambani unveiled RIL’s ?75,000-crore push into clean energy over three years in June. RIL plans to spend ?60,000 crore on four so-called giga factories. One of the four factories will make solar photovoltaic (PV) modules. In Sterling & Wilson Solar, Reliance New Energy plans to buy a 15.56% stake through a preferential allotment of 29.3 million shares; 18.4 million shares, or 9.7% of the outstanding, from Shapoorji Pallonji and Co.; and 49.1 million shares, equivalent to a 25.9% stake, through an open offer under the country’s takeover regulations. “Reliance New Energy will hold 40% of the equity capital of Sterling & Wilson, consequent to acquisition in the open offer, follow-on acquisition of shares from Shapoorji Pallonji and Co. and Khurshed Daruvala, and sell down if any required," RIL said. As part of its green energy pivot, RIL also plans to help set up 100GW of solar energy by 2030. The acquisition of REC will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including Europe, the US and Australia," RIL said. Sterling & Wilson Solar has a 3,000 strong team and presence across 24 countries. It provides a range of solar energy turnkey solutions, including design, procurement, construction, project management and operations and management. Khurshed Daruvala will continue to be the chairman and lead the next phase of growth for Sterling & Wilson, the company said.