Major Stakeholders Propose Privatization of ReNew Energy Global

Leading investors in ReNew Energy Global, including the Canada Pension Plan Investment Board and Masdar, have proposed taking the company private at a valuation of $2.82 billion. The deal offers a premium on current stock prices and promises immediate liquidity to shareholders amidst the company's declining market value.

Some of the biggest investors in ReNew Energy Global have signaled their intent to take the company private, as revealed in filings to the U.S. Securities and Exchange Commission (SEC). A proposed deal places the energy generator's valuation at a substantial $2.82 billion, calculated by Reuters.

A powerful consortium involving the Canada Pension Plan Investment Board, UAE-based Masdar, chairman Sumant Sinha, and a segment of the Abu Dhabi Investment Authority—collectively holding 64% voting rights—has offered to buy out shares in India's second-largest clean energy producer at $7.07 per share. This price represents an 11.5% premium over the stock's NASDAQ closing price of $6.34 on December 10. The total valuation is drawn from 398.61 million diluted shares outstanding as of August 15, per the company's official data.

In correspondence to ReNew's board's lead independent director, the consortium emphasized that the proposal offers shareholders 'immediate liquidity not available in public markets.' The stock has depreciated nearly 18% this year. Approval of the offer would facilitate an exit for Japan's top utility, JERA, which held 11.7% of Class A shares. Masdar stated the proposal would back India's energy transition. Goldman Sachs, an early investor, divested all shares post-2021 public listing. ReNew operates 10.3 GW of varied renewable projects in India, and the consortium foresees no financing or disbursement conditions for completing the deal.

(With inputs from agencies.)