India's ReNew Power To List On NASDAQ With $8 Billion Valuation

It marks the first major overseas listing of an Indian company via the special purposed acquisition company (SPAC) route, which is currently a significant hit on Wall Street.

Mumbai: India's largest renewable energy producer ReNew Power has agreed to list on NASDAQ with an enterprise value of $8 billion as it decided to merge with the blank-check company RMG Acquisition Corporation II.

It marks the first major overseas listing of an Indian company via the special purposed acquisition company (SPAC) route, which is currently a significant hit on Wall Street.

The company expects total revenues of $1.2 billion, consisting of $855 million of fully committed private placement of common stock in ReNew Power and $345 million of gross cash held in trust by RMG II, subject to redemption.

The biggest deal in the fast-growing clean energy sector is expected to close in the second quarter, the Goldman Sachs-backed company said on Wednesday.

Upon closing the transaction, the combined company would be named ReNew Energy Global PLC and publicly listed under the symbol "RNW." The transaction would further bolster ReNew's leading position in solar and wind energy generation for the Indian market by funding medium-term growth opportunities and paying down debt.

"The Indian renewable energy sector has grown rapidly over the last decade," said Sumant Sinha, Founder, Chairman & Chief Executive Officer of ReNew Power.

"During this time, ReNew has been a driving force in making sure that the sources of this growth are sustainable, and also economically competitive. Over the next decade, ReNew plans to maintain its track record of market share growth, and contribution to the greening of the Indian power sector, and to help meet the Indian government's ambitious renewable energy targets. Over time, we will expand our capabilities even further, with utility-scale battery storage, and customer-focused intelligent energy solutions."

ReNew's leadership will remain intact, with Sumant Sinha as Chairman & Chief Executive Officer of the combined company, overseeing its strategic growth initiatives and expansion, said the statement.

The pro forma consolidated and fully diluted market capitalization of the combined company would be $4.4 billion.

Proceeds from the deal will be used to support ReNew's growth strategy, including the construction of its contracted, utility-scale renewable power generation capacity and to reduce debt, the statement said.

The management of ReNew and its current group of shareholders, including Goldman Sachs, CPPIB, Abu Dhabi Investment Authority, and JERA Co, among others, which together own 100% of ReNew today, will shift the majority of their equity to the new company and are expected to account for 70% of the effective ownership of the company at the close of the transaction.

"ReNew's vision is to enhance its position as a global leader in the clean energy space, to continue leading India's ongoing clean energy transition, and to assist in deepening electrification and decarbonization of the Indian economy," said Mr. Sinha.
RMG II is a SPAC for acquisitions of shares or similar business combinations with one or more companies. The company is sponsored by the Riverside Management Group (RMG) and the management team of James Carpenter, Robert Mancini, and Philip Kassin.