Goldman Sachs is reportedly planning to transfer its remaining 14 per cent stake in ReNew Energy Global, the parent company of ReNew Power. The stake is being sold to Canada Pension Plan Investment Board (CPPIB) for around $268 million.
According to the Economic Times, the pension fund with a stake of over 51 per cent in ReNew Energy Global will become its majority shareholder.
In February, the investment banking firm sold its 18 million Class A shares and 3.4 million Class C shares at $6.5 per share to the pension fund which was worth $139 million. As per the recent regulatory filing, the deal was closed at $4.8 price per share. CPPIB now holds 76 million Class A shares, one Class D share and over 118.363 million Class C shares. In 2011, Goldman Sachs made its initial investment in ReNew energy for Rs 1,000 crore, Live Mint reported.
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As per media reports, the decision by pension fund to expand its ownership in ReNew is a part of a strategy to grow in the renewable energy sector. Global investment firms and pension funds are now drawing their attention towards environmental, social and governance (ESG) initiatives as they are looking to invest in clean energy initiatives.
Apart from CPPIB, the other shareholders in ReNew are Abu Dhabi Investment Authority with 14.5 per cent and Japan’s JERA with 7.1 per cent with public shareholders having close to 22 per cent. ReNew energy has a capacity of close to13.4 GW and it produces renewable energy by utilising solar and wind projects. The energy maker is now looking to venture into green hydrogen sector for which it has partnered with Larsen & Toubro and Indian Oil Corp, newspaper Economic Times reported.
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