Sterling and Wilson Solar shares zoom 17% over Reliance deal

Through a series of transactions, a Reliance subsidiary company acquired a 40 percent stake post-money in SWSL from Shapoorji Pallonji and Company Private Ltd, Khurshed Daruvala and Sterling, and Wilson Solar Ltd.

The share price of Reliance Industries (RIL) hit a 52-week high of Rs 2,724.70 in early trade on October 11 after the company bought a majority stake in REC Solar Holdings.

“Reliance New Energy Solar (RNESL), a wholly-owned subsidiary of Reliance Industries (RIL), has announced the purchase of 100% shares of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) for an Enterprise Value of USD 771 million,” according to a BSE filing.

In a separate statement, Reliance New Energy Solar announced that it will buy 40% of Sterling and Wilson Solar (SWSL) in a deal that highlights the company’s clean-energy ambitions.

The shares of Sterling and Wilson Solar soared 17% on Monday after Mukesh Ambani’s Reliance Industries Ltd agreed to buy up to a 40% interest in the Shapoorji Pallonji Group subsidiary. On the BSE, Sterling and Wilson Solar shares soared 17 percent to a 52-week high of 509. On the National Stock Exchange, it soared 17% to a 52-week high of 509.10. (NSE). On the BSE, shares of Reliance Industries rose 2% to a new high of 2,724.70.

“We welcome SWSL as a strategic partner towards establishing our New Energy platform,” Mukesh Ambani, Chairman of Reliance Industries, said of the transaction. SWSL will become a significant element of our solar value chain because to its engineering talent, deep domain understanding, global presence, and experience delivering some of the world’s most challenging projects. This will allow us to supply our full, end-to-end ecosystem to Indian consumers, resulting in cost-effective green energy. We admire Khurshed Daruvala and the world-class institution he has developed over the years, and we look forward to working with him to make SWSL a global leader in EPC and O&M.”

“Along with the Shapoorji Pallonji Group, we have established SWSL a global leader in offering turnkey solutions in the energy value chain,” stated Khurshed Daruvala, Chairman of SWSL. With its comprehensive new energy vision and dedication to putting India on the global green energy map, Reliance gives us a wonderful opportunity to solidify SWSL’s position as the world’s top EPC solutions supplier. I’m confident that this cooperation will infuse fresh life and excitement into SWSL, and we’re excited to be a part of history-making.”

The acquisition will aid the Indian behemoth’s expansion into green energy markets around the world, including the United States, Europe, Australia, and Asia. REC employs over 1,300 people worldwide and manufactures solar grade polysilicon, solar panels, and modules at facilities in Norway and Singapore, according to the statement. Reliance said it will employ REC’s technology to make metallic silicon and solar panels at its gigafactory in Jamnagar, Gujarat, with a capacity of 4 gigawatts per year initially and 10 gigawatts later.

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