Shares of Suzlon Energy Ltd. surged by nearly 5% to touch a day’s high of Rs 69.48 on 7th August after the company proclaimed that it had acquired a 76% stake in Renom Energy Services from the Sanjay Ghodawat Group in two tranches.

The company will buy the 76% stake in two stages: 51% for Rs 400 crore now and the remaining 25% for Rs 260 crore within 18 months, either in cash or via a share swap.

The first tranche will be acquired at Rs 784 crore and the second at Rs 1,040 crore. Suzlon had Rs 1,100 crore in cash on its balance sheet at the end of the June quarter.

Renom Energy Services will become a subsidiary of Suzlon Energy Ltd. after the acquisition. The Board has approved a sale and purchase agreement (SPA) and a shareholders’ agreement (SHA).

The acquisition will expand Suzlon’s involvement in new areas like wind energy services.

While Suzlon’s in-house services are focused on Suzlon turbines, Renom handles multi-brand renewable energy assets. This places Suzlon comprehensively in the Indian renewables OMS sector, says CEO JP Chalasani.

The stock has surged 80% YTD and snapped a two-day losing streak with today’s gain.

At 10:56 AM, the shares of Suzlon Energy Ltd. were trading 4.66% higher at Rs 69.35 on BSE.

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