Key investors in ReNew Energy Global, India’s second-largest clean energy producer, have proposed to take the company private in a deal valued at $2.82bn, Reuters reported December 11 citing filings with the US Securities and Exchange Commission (SEC). The move comes as the company’s stock struggles, having dropped nearly 18% in value this year.

The consortium of major shareholders, including Canada Pension Plan Investment Board, UAE-based Masdar, chairman Sumant Sinha and a unit of the Abu Dhabi Investment Authority, collectively holding 64% voting rights, has offered to acquire shares at $7.07 each. This price represents an 11.5% premium over the December 10 closing price of $6.34 on Nasdaq.

In a letter attached to the SEC filing, the consortium described the offer as a way to provide shareholders with "immediate liquidity not available in the public markets."

If the board approves the offer, Japan’s leading utility JERA, which owned 11.7% of the company’s Class A shares as of July, would exit its stake. It remains unclear whether JERA still holds its full shareholding, Reuters reported.

Masdar stated that the proposal would offer fresh capital to bolster India’s energy transition. The consortium has assured that the deal will proceed without financing or disbursement conditions.

ReNew Energy Global operates a diverse portfolio of solar, wind, hydro and hybrid projects with a combined capacity of 10.3 GW across India. The company went public in 2021, with Goldman Sachs, an early investor, exiting its stake at the time.