A consortium of investors, including UAE-based Masdar and the Abu Dhabi Investment Authority (ADIA), has made an offer to take ReNew Energy Global, India’s second-largest renewable energy company, private. According to filings submitted to the U.S. Securities and Exchange Commission (SEC), the proposed deal values the clean energy company at $2.82 billion. Other members of the consortium include the Canada Pension Plan Investment Board and ReNew’s Chairman, Sumant Sinha.
The group has proposed a share price of $7.07, which reflects an 11.5% premium over ReNew’s closing price of $6.34 on December 10. ReNew Energy Global operates a total of 10.3 gigawatts of renewable energy capacity in India, including solar, wind, hydro, and hybrid power projects.
Investors in the Middle East, particularly state-owned entities, have been increasingly drawn to renewable energy investments in India. Masdar, a renewable energy company owned by the UAE, has described the proposal as an effort to relay more capital toward India’s clean energy transition. Such investments align with the broader strategy of Middle Eastern nations to expand their renewable energy interests globally.
CreditSights, part of the Fitch Group, stated that delisting ReNew from Nasdaq could reduce the company’s compliance and regulatory costs, which may benefit its growth strategy. However, delisting might limit ReNew’s access to raising capital through U.S. public equity markets. CreditSights also mentioned that Masdar’s participation in the consortium could open additional funding options from the UAE and other Middle Eastern markets.
The consortium’s offer would give ReNew shareholders an opportunity to sell their shares in a market where the company’s stock performance has been weak. Before the proposal, ReNew’s share price had fallen by nearly 18% this year. After the announcement, the stock surged 17.7% to $7.46 on December 13, closing above the consortium’s offer price.
