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August 24, 2021

ReNew Power concludes $8bn merger with RMG II

With the completion of the merger, RMG II has become a subsidiary of the combined entity ReNew Energy Global.

By Umesh Ellichipuram

Indian renewable energy company ReNew Power has completed its previously announced merger with RMG Acquisition Corporation II (RMG II), a special purpose acquisition company.

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The merger was announced in February in a deal with an enterprise value of $8bn.

RMG II’s board of directors and shareholders recently approved the combination, which resulted in $610m in cash proceeds for ReNew Power.

These cash proceeds include funds from RMG II’s former trust account and from a private placement in public equity (PIPE).

The PIPE investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management, TT Environmental Solutions Fund and Zimmer Partners.

With this merger, ReNew Power has now become India’s largest publicly traded renewable energy company in terms of energy generation capacity.

RMG II director and CEO Robert Mancini said: “ReNew is now well-positioned to maintain and expand its leadership position as the largest renewable power generation company in India, and lead decarbonisation efforts in one of the world’s largest and most dynamic economies.”

As a result of this merger, RMG II has become a wholly owned subsidiary of the new combined entity, ReNew Energy Global.

From 24 August, ReNew’s ordinary shares and ReNew’s warrants will start trading on the NASDAQ.

ReNew intends to use the proceeds from this to pay off its debts, fund its operations and expedite its growth plan.

For this transaction, Goldman Sachs (India) Securities and Morgan Stanley India Company served as financial advisors to ReNew.

Latham and Watkins, Nishith Desai and Associates and Cyril Amarchand Mangladas acted as the company’s legal advisors.

Skadden, Arps, Slate, Meagher and Flom served as legal advisor to RMG II, while Khaitan and Co served as the company’s legal advisor on Indian legal aspects.

In May, ReNew Power announced plans to build a solar cell and module manufacturing facility in the Indian state of Gujarat.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
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Enter your details here to receive your free Report.

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