January 3 (Renewables Now) - Indian conglomerate Reliance Industries Ltd (BOM:500325) has agreed to purchase an 88% stake in domestic solar energy services firm Kanoda Energy Systems Pvt Ltd in an all-cash deal worth up to INR 750 million (USD 10.7m/EUR 9.4m).
The transaction is expected to close by March 2020, Reliance Industries said in a bourse filing last week. The company has signed a binding agreement through its unit Reliance Industrial Investments and Holdings Ltd, seeking to support its renewable energy initiatives.
Ahmedabad, Gujarat-based Kanoda is active in the solar advisory and product design and technology validation sectors and recently entered the engineering, procurement and construction (EPC) and operation and maintenance (O&M) solar market. According to its website, its solar development business is backed with capital from Indian financial services group Tipsons.
The target entity ended up the fiscal year through March 2018 with a net profit of INR 8.1 million and revenues of INR 1.1 million.
Reliance Industries said its investment is not subject to regulatory clearance. All statutory approvals for the deal have already been secured.
(INR 10 = USD 0.143/EUR 0.126)