Reliance To Acquire Kanoda Energy
Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL or the “Company”) has entered into a binding agreement with Kanoda Energy Systems Private Limited (KESL) for the acquisition of equity shares for a cash consideration not exceeding INR 75 crores. The said investment upon completion will translate into 88% equity stake in KESL on a fully diluted basis. The total investment is likely to be completed by March 2020.
KESL is a renewable energy services company incorporated on 24th August 2007.
KESL has a presence in specialized fields of solar advisory, product design and technology validation and recently forayed into engineering, procurement & construction (EPC) and operation & maintenance (O&M) of solar photovoltaic (PV) systems.
KESL had a turnover of INR 10.54 crore, INR 1.63 crore and Nil and Net Profit (Loss) of INR 81.38 lakhs, INR 16.54 lakhs and INR (0.51) lakhs in FY 2018, FY 2017 and FY 2016 respectively.
The aforesaid investment will assist in the group’s initiatives to use renewable energy sources. All statutory approvals have been obtained for this investment. No regulatory approvals are required for this investment. The investment does not fall within related party transactions and none of RIL’s promoter/promoter group/group companies have any interest in the transaction.