ReNew completes its merger with RMG II

The merger attributes an enterprise value of around $ 8 billion and a net worth of $ 4.4 billion to the new entity, ReNew Energy Global Plc.

PSPCs are publicly traded shell companies that merge with unlisted companies to go public, thereby avoiding the conventional long route of the initial public offering (IPO). Indian green energy companies are exploring this option as an increasing emphasis is placed on environmental, social and governance (ESG) investments.

“As a result of the business combination, RMG II became a wholly-owned subsidiary of ‘ReNew Energy Global plc’ (the post-combination entity referred to in the remainder of this press release as ‘ReNew’). As of the opening of trading on August 24, 2021, the Class A common shares of ReNew and the warrants of ReNew are expected to begin trading on The Nasdaq Stock Market LLC (“Nasdaq”) under the symbols “RNW” and “RNWWW,” respectively, “ReNew Power said in a statement Tuesday.

The $ 1.2 billion equity proceeds from ReNew Power’s merger with RMG II include an $ 855 million private equity investment (PIPE). PIPE investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners.

Mint reported on ReNew Power’s SPAC plans, valued at nearly $ 4 billion, on February 15, and its discussions with the acquisition of RMG, owned by Nasdaq-listed SPAC Riverside Capital Management. ReNew Power had suspended its 2019 Indian IPO plan amid the volatility.

“As a result of this transaction, ReNew received net proceeds of $ 610 million, consisting of funds from the former RMG II trust account and a private placement in public capital (PIPE), after redemptions and fees. transaction, “the statement read.

ReNew Power operates 6.24 gigawatts (GW) of solar and wind power, with a total capacity of around 10 GW as of December 31 of last year. In 2018, it acquired 1.1 GW of wind and solar assets from Ostro Energy, one of the largest acquisitions in the Indian renewable energy space.

“The finalization of our business combination with RMG II opens a new era for our business and is a big step forward in enabling a further decarbonization of the Indian energy sector,” Sumant Sinha, CEO of ReNew said in the statement.

ReNew Power is among the early entrants into India’s green economy. Current shareholders of ReNew Power include Goldman Sachs, the Canada Pension Plan Investment Board, Japanese company JERA Co. Inc., the Abu Dhabi Investment Authority, GEF SACEF India and Sumant Sinha.

Investor interest in India’s green economy continues. A recent example is the purchase by the Canadian pension fund of the Ontario Municipal Employees’ Retirement System (OMERS) of a 19.4% stake in Azure Power Global Ltd., listed on the NYSE, for $ 219 million. dollars from IFC and IFC GIF Investment Company. Recently, the Thai state-owned company PTT Group also announced the acquisition of a 41.6% stake in Avaada Energy Pvt Ltd for approximately $ 454 million.

“The transaction was unanimously approved by the board of directors of RMG II and was approved at the extraordinary general meeting of shareholders of RMG II held on August 16, 2021 (the” general meeting extraordinary “)”, the statement read.

ReNew Power also plans to invest $ 1.2 billion to supply 400 megawatts (MW) around the clock and has signed a long-standing Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI ) managed by the state.

This comes against the backdrop of India’s solar and wind generation setting an all-time high of 43.1 GW on July 27. India has also passed the 100 GW milestone of installed renewable energy capacity.

India is running the world’s largest clean energy program to reach 175 GW of renewable capacity. According to the Central Electricity Authority, by 2030, the country’s electricity needs would be 817 GW, more than half of which would be clean energy.