Renewable energy provider ReNew Power Private Limited on Tuesday announced that it has completed its previously announced business combination with RMG Acquisition Corporation II.
As a result of the business combination, RMG II has become a wholly-owned subsidiary of ReNew Energy Global plc, the post-combination entity.
ReNew’s Class A ordinary shares and ReNew’s warrants are expected to commence trading on The Nasdaq Stock Market LLC under the symbols RNW and RNWWW, respectively from Tuesday.
Early this year, ReNew Power struck a deal to float by merging into RMG Acquisition Corporation II, a blank-cheque firm listed in the US.
The current development marks closure of the amalgamation process.
Founded in 2011, ReNew Power has a portfolio of more than 100 operational utility-scale wind and solar energy projects spread across 9 Indian states.
The company also owns and operates distributed solar energy projects for more than 150 commercial and industrial customers across India.
ReNew Power presently has over 5 GW of operational capacity and aggregate an aggregate capacity of close to 10 GW.
Currently, its total utility-scale committed capacity is contracted under power purchase agreements (PPAs) with an average duration of more than 24 years.
The statement said that ReNew Power has also developed expertise in ancillary areas such as energy storage apart from generating clean energy.
In 2020, it also entered into the emerging digital services business with the acquisition of Climate Connect, a Pune, India-based company present in AI-enabled grid management and load forecasting.
“The completion of our business combination with RMG II begins a new era for our company, and is a great step forward for enabling further decarbonization of the Indian power sector,” Sumant Sinha, chief executive officer, ReNew, said.
“The entire ReNew team has remained laser-focused on maintaining our leadership position in Indian renewable energy throughout this process, and we will continue to work to expand clean power generation across India.
We have the ability to do even more in bringing affordable, reliable, green, utility-scale power supply to more people and businesses in India through implementation of our proprietary software and AI-enabled monitoring capabilities,” he said.
“With a strong balance sheet, bolstered by over $870 million of cash from the transaction, ReNew offers investors a unique way to play the continued and accelerating clean electrification trend seen across the global economy.
I look forward to working with Sumant and the whole ReNew team to bring their vision to reality,” Robert Mancini, chief executive officer and director, RMG II, said.
As a result of this transaction, ReNew has received $610 million in net proceeds, consisting of funds from RMG II’s former trust account and from a private placement in public equity (PIPE), after redemptions and transaction fees.
The PIPE is anchored by institutional investors including funds and accounts managed by BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners.
ReNew will use the proceeds to accelerate its growth, fund operations and pay off debt.
ReNew’s senior management team will continue to lead the combined company.