Goldman Sachs plans to move its remaining 14% stake in ReNew Energy Global the Nasdaq-listed parent of ReNew Power to Canada Pension Plan Investment Board (CPPIB) for around $268 million. After the acquisition, the pension fund, one of the biggest in the world, will own more than 51% of ReNew, making it a majority stakeholder.
The agreement will allow Goldman to leave ReNew, one of the biggest renewable energy companies in India. The Wall Street company, one
of the original backers of Sumant Sinha's ReNew, has gradually reduced its ownership of the business. With over $536 billion in assets under management, Canada Pension Plan has continuously increased its stake in the business. In response to an emailed query, a CPPIB spokesperson said, “We don’t have any further comment other than information contained in the SEC filings.” Goldman and ReNew spokespersons did not respond to queries. The other key shareholders in ReNew are Abu Dhabi Investment Authority with 14.5% and Japan’s JERA with 7.1%. Public shareholders hold close to 22%.
Canada Pension Plan’s move to increase its stake in ReNew is part of a plan to boost investments in the renewables space. ReNew has a capacity of over 13.4 GW. Pension funds and global investment firms with a focus on environmental, social and governance (ESG) investing have been scouting for opportunities in clean energy initiatives.
By initiatives utilising solar and wind energy, ReNew has been able to provide green energy. The business is currently looking to expand into green hydrogen. In order to produce green hydrogen throughout the nation, it has partnered with Larsen & Toubro and Indian Oil Corp.
