Mumbai headquartered Reliance Industries has announced that it has come to terms with renewable energy company Kanoda Energy Systems Pvt. Ltd to acquire about 88% stake in the firm for $10.7 million (Rs 75 crore) in an all-cash deal.
As per the stock-exchange filing of Reliance Industries, the complete deal will be settled by March 2020. Reliance has often maintained that it wants to utilize renewable sources for energy, the deal can be seen as a move towards that direction. The deal was made through the wholly-owned subsidiary of Reliance Industries, Reliance Industrial Investments and Holdings Ltd.
Kanoda Energy was incorporated in 2007. The company has received funds from Ahmedabad-based Tipsons as per the website of the company. The firm deals in solar advisory, product design, and technology validation. The firm has recently stepped in a new direction as it started offering services in engineering, procurement and construction (EPC) and operation and maintenance (O&M) of solar photovoltaic systems.
As per details, Kanoda made a significant leap in terms of their turnover. The turnover of the company which stood about Rs 1.63 crore in the financial year 2016-27 soared to Rs 10.54 crore for the year 2017-18.
Reliance, on the other hand, is going strong about their business through various other deals into various segments. We recently confirmed that the firm had acquired a small equity stake in a blockchain startup Vakt Holdings. It had also picked about 13% in a US-based tech startup which was working in developing pod car transport systems.
Image Courtesy : Kanoda, indiainfoline