Sterling & Wilson shares rose 2% after RNESL became its promoter

01 Jan 2022

Shares of Sterling and Wilson Renewable Energy Limited (SWREL) rose by 2% after Reliance New Energy Solar Limited (RNESL) became its promoter after paying Rs 1,583 crore for acquiring 25.9% equity.

The company's share price rose to Rs 394, compared to Rs 386 on the National Stock Exchange (NSE). The shares of Reliance Industries added 0.6% on the NSE..

According to a report, the acquisition deal included RNESL's purchasing interest in SWREL from Shapoorji Pallonji Group, making an open offer as per the regulations. However, the Competition Commission of India (CCI) had cleared the deal..

After the transaction, RNESL and other firms acquired a 40% stake in SWREL in total..

Earlier, RNESL, Reliance Industries Limited (RIL) and Reliance Ventures Limited paid Rs 259 crore for acquiring 25.90% equity in SWREL..

Last year in December, RNESL deposited Rs 1,583 crore together with the initial cash deposit of Rs 259.26 crore, which is equal to 100% of the offer payable under the open offer of the deal, considering full acceptance of the open offer..

The company said that after receiving the receipt of stakeholders' approval, fulfiling other conditions under the SSA and according to the association of the target company, the company issued and allotted shares to the acquirer on 30 December..

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