RIL to buy 40% stake in Sterling & Wilson Solar for Rs 2,850 crore

Within hours of announcing acquisition of REC Solar Holdings for $771 million, Reliance Industries announced on Sunday that its subsidiary will acquire a 40 per cent stake in Sterling & Wilson Solar Ltd through a combination of primary investment, secondary purchase and open offer for around Rs 2,850 crore.

Reliance New Energy Solar Ltd (RNESL), a subsidiary of Reliance Industries, will first acquire 15 per cent in Sterling & Wilson by way of a preferential allotment of 29.3 million equity shares (equivalent to 15.46 per cent post preferential share capital) at Rs 375 per share. RIL will also acquire 18.4 million equity shares by RNESL from SP group company (equivalent to 9.7 per cent post preferential share capital) at a price of Rs 375 per share. This will cost RIL about Rs 1,100 crore.