Sterling And Wilson Surges Over 8% As RIL Buys Stake



Sterling And Wilson Surges Over 8% As RIL Buys Stake

At 12:55 pm, Sterling and Wilson shares were trading higher by 7.81 per cent on the BSE

Sterling and Wilson shares surged more than 8 per cent in a a firm market on the news that Reliance Industries, through its subsidiary Reliance New Energy Solar will acquire a 40 per cent stake in the company as part of its expansion plans into green energy markets globally. At 12:55 pm, Sterling and Wilson shares were trading at Rs 467, higher by 7.81 per cent, on the BSE.

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 2.93 crore shares (equivalent to 15.46 per cent post preferential share capital) at Rs 375 per share through a combination of primary investment, secondary purchase and open offer for around Rs 2,850 crore, Reliance New Energy Solar said in a regulatory filing to the stock exchanges.

Hours earlier, Reliance New Energy Solar Ltd (RNESL) had announced acquisition of the Norwegian-headquartered solar panel maker REC Solar Holdings for $771 million from China National Bluestar (Group).

In June, Reliance Industries’ Mukesh Ambani had pledged to spend $10 billion on alternative energy over three years to pivot the conglomerate to cleaner fuels. Reliance Industries currently receives nearly 60 per cent of its annual revenue from its oil-related business.

Sterling & Wilson has presence in 24 countries and has installed 11 gigawatt of solar power projects, Reliance said in a separate statement.

Meanwhile, Reliance Industries’ shares touched a life-time high of Rs 2,724 in intra-day trading on the back of the news development.

The BSE Sensex and NSE Nifty were trading at fresh record-highs, up 0.6 per cent, at the time.

(This Article has not been edited by NEWSUP18 and it is auto-generated from a syndicated feed.)

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