Goldman-backed ReNew Power to list on NASDAQ at $8 billion valuation

Truman Slate

Goldman Sachs promoted renewable electricity technology company ReNew Ability will list on NASDAQ as a result of a business blend with RMG Acquisition Company II (RMG II). The professional forma consolidated and completely diluted organization value is envisioned to be shut to $8 billion.

In a general public assertion, ReNew introduced execution of a definitive arrangement with RMG II for a business blend that would consequence in ReNew becoming a publicly listed company on the NASDAQ.

“Total predicted proceeds of $one.two billion, comprised of $855 million, upsized, completely-dedicated personal placement of widespread inventory in ReNew Ability (the “PIPE”) and $345 million of gross dollars held in believe in by RMG II, matter to redemptions predicted internet most important proceeds of around $610 million to fund the company’s accelerated growth strategy and pay back down credit card debt,” mentioned a assertion by the company.

RMG II is particular purpose acquisition company (SPAC) for effecting a merger, inventory buy or very similar business blend with one particular or far more firms. The company is sponsored by Riverside Administration Group (“RMG”) and the Administration Workforce of James Carpenter, Robert Mancini and Philip Kassin.

This is the 1st ever De-SPAC transaction globally involving a renewable electricity making company and 1st involving an India dependent concentrate on since 2016.

On closing of the transaction, the put together company would be named ReNew Electricity Global PLC and would be publicly listed below the image ‘RNW’. ReNew mentioned the transaction would enable the company by funding medium-term growth alternatives, as well as spending down credit card debt.

“Over the following 10 years, ReNew designs to preserve its keep track of report of market share growth, and contribution to the greening of the Indian electricity sector. In excess of time, we will increase our capabilities even further, with utility-scale battery storage, and client focused clever electrical power options,” mentioned Sumant Sinha, founder chairman and CEO, ReNew Ability.

ReNew has just lately ventured into newer parts this sort of as solar production, electricity transmission, and electricity distribution. It just lately participated in a tender for privatisation of electricity distribution in Dadar & Nager Haveli, Daman & Diu. The company also designs to increase in electrical power storage and hydrid electricity initiatives.

Aside from Goldman Sachs, ReNew is backed by fairness investors this sort of as Tokyo dependent JERA, Abu Dhabi Expenditure Authority, Canada Pension Prepare Expenditure Board, and Global Surroundings Fund. The investors who jointly have a hundred for each cent of ReNew currently, will be rolling a majority of their fairness into the new company, and are envisioned to depict around 70 for each cent of the efficient company ownership on transaction shut.

Goldman Sachs has been looking to exit from its financial commitment for shut to two a long time. The PIPE listing would also deliver an easy exit route to the present investors, mentioned a senior market analyst.

“The transaction re-emphasises potent investor curiosity in Indian renewable electrical power sector with massive growth possible. The offer saw participation from some of the world’s best ESG investors and opens the doorway for many far more SPAC transactions from India across sectors,” mentioned Gaurav Singhal, managing director, India Expenditure Banking, Lender of The usa, which acted as sole fiscal advisor and Guide PIPE Placement Agent to RMG II.

ReNew’s leadership will continue to be intact, with Sumant Sinha as Chairman & Main Government Officer of the put together company. Bob Mancini will be the appointee from RMG II to the Board.

“Our diligence on ReNew confirmed the company’s dedication to measured growth as a result of long-term partnerships with Indian central and point out government agencies, scale, technological innovation, and potent fiscal placement need to help ReNew to just take edge of the extremely constructive traits in the Indian electricity market in excess of the following 10 years and outside of,” mentioned Bob Mancini, Main Government Officer and Director of RMG II.

The upsized PIPE was anchored by marquee institutional investors like resources and accounts managed by BlackRock, BNP Paribas Electricity Changeover Fund, Mr. Chamath Palihapitiya, Sylebra Money, TT Global Asset Administration Ltd, TT Environmental Solutions Fund and Zimmer Associates.

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