A whole ReNew world!
ReNew Power, India’s biggest renewable energy produces has joined the SPAC party. It announced a merger with RMG Acquisition Corporation II, a NASDAQ-listed SPAC. ReNew’s portfolio boasts over 100 projects generating more than 5600MW installed power capacity in nine states.
RMG II raised $345m in its IPO and with the acquisition of ReNew, the market cap of the resulting company will be around $4.4bn. ReNew will raise about $1.2bn in new money on the NASDAQ via the SPAC route.
This is the first major SPAC deal targeting an Indian company. Although the Government announced plans to delicense the distribution sector, capacity-building has some distance to traverse. In this context, ReNew’s debut may lead to capital expansion and encourage smaller players.