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

Goldman Sachs promoted renewable energy technology company ReNew Ability will list on NASDAQ by a business enterprise combination with RMG Acquisition Corporation II (RMG II). The professional forma consolidated and totally diluted enterprise worth is predicted to be close to $eight billion.

In a general public assertion, ReNew declared execution of a definitive settlement with RMG II for a business enterprise combination that would end result in ReNew getting a publicly detailed company on the NASDAQ.

“Total expected proceeds of $1.2 billion, comprised of $855 million, upsized, totally-fully commited personal placement of frequent stock in ReNew Ability (the “PIPE”) and $345 million of gross dollars held in have faith in by RMG II, matter to redemptions expected net major proceeds of roughly $610 million to fund the company’s accelerated advancement strategy and fork out down financial debt,” stated a assertion by the company.

RMG II is unique function acquisition company (SPAC) for effecting a merger, stock buy or identical business enterprise combination with a single or extra enterprises. The company is sponsored by Riverside Administration Group (“RMG”) and the Administration Crew of James Carpenter, Robert Mancini and Philip Kassin.

This is the 1st ever De-SPAC transaction globally involving a renewable energy generating company and 1st involving an India dependent target due to the fact 2016.

On closing of the transaction, the put together company would be named ReNew Vitality International PLC and would be publicly detailed underneath the image ‘RNW’. ReNew stated the transaction would aid the company by funding medium-time period advancement possibilities, as effectively as spending down financial debt.

“Over the next 10 years, ReNew options to retain its track file of market share advancement, and contribution to the greening of the Indian energy sector. About time, we will increase our abilities even further, with utility-scale battery storage, and shopper focused smart strength alternatives,” stated Sumant Sinha, founder chairman and CEO, ReNew Ability.

ReNew has lately ventured into more recent regions this sort of as photo voltaic manufacturing, energy transmission, and energy distribution. It lately participated in a tender for privatisation of energy distribution in Dadar & Nager Haveli, Daman & Diu. The company also options to increase in strength storage and hydrid energy initiatives.

Aside from Goldman Sachs, ReNew is backed by fairness buyers this sort of as Tokyo dependent JERA, Abu Dhabi Investment Authority, Canada Pension Prepare Investment Board, and International Atmosphere Fund. The buyers who with each other have 100 for every cent of ReNew these days, will be rolling a the greater part of their fairness into the new company, and are predicted to characterize roughly 70 for every cent of the successful company possession upon transaction close.

Goldman Sachs has been seeking to exit from its expense for close to two years. The PIPE listing would also present an uncomplicated exit route to the current buyers, stated a senior market analyst.

“The transaction re-emphasises potent trader curiosity in Indian renewable strength sector with enormous advancement opportunity. The offer saw participation from some of the world’s leading ESG buyers and opens the door for quite a few extra SPAC transactions from India throughout sectors,” stated Gaurav Singhal, handling director, India Investment Banking, Financial institution of The united states, which acted as sole fiscal advisor and Lead PIPE Placement Agent to RMG II.

ReNew’s leadership will stay 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 commitment to measured advancement by very long-time period partnerships with Indian central and point out government agencies, scale, technological innovation, and potent fiscal place really should help ReNew to choose advantage of the amazingly positive trends in the Indian energy market about the next 10 years and over and above,” stated Bob Mancini, Main Government Officer and Director of RMG II.

The upsized PIPE was anchored by marquee institutional buyers which includes resources and accounts managed by BlackRock, BNP Paribas Vitality Changeover Fund, Mr. Chamath Palihapitiya, Sylebra Funds, TT International Asset Administration Ltd, TT Environmental Methods Fund and Zimmer Partners.