ReNew Energy Global eyes buyback to delist from Nasdaq

Gurugram-based ReNew Energy Global Plc has received a non-binding offer from its main shareholders to acquire the publicly held shares of the company, in what will pave the way for its exit from the Nasdaq.

Four key investors that control almost two-thirds of the company launched the offer for the remaining shares at an 11.5% premium to its last closing share price, a statement to the exchange said.

ReNew is planning an offer of $7.07 per share, when compared with Tuesday’s closing price of $6.34, in a deal with a consortium of companies, a US Securities and Exchange Commission filing dated 10 December said.

The consortium includes UAE’s state-owned renewable energy firm Masdar and other investors such as the Canada Pension Plan Investment Board, one of the world’s biggest pension funds, the Abu Dhabi Investment Authority, and ReNew Energy chief executive Sumant Sinha.

ReNew, which has a market capitalization of about $2.4 billion, was set up in 2011 and today has about 10 gigawatts (GW) of renewable capacity, including wind and solar.

“There is a high probability the consortium will be able to buy out the other shareholders and take ReNew private, although they might have to make a better offer,” analysts at Bernstein India said in an analysis.

“Subsequent to that it won’t be surprising to see the stock listed back in India with a capital raise to help ReNew realise its full potential,” they added.

Morgan Stanley analysts had in September downgraded ReNew to “equal weight”, saying that while the company may post strong earnings, its revenues will be volatile because of its large wind portfolio, apart from significant debt.