New York lender Goldman-backed ReNew agrees US public listing in $8bn SPAC merger

• Financial

New York City lender Goldman Sachs-backed ReNew Power had agreed to a public listing in the United States via a $8 billion merger with an SPAC (Special Purpose Acquisition Company) backed by the blank-check’s Buffet Chamath Palihapitiya alongside BlackRock and Sylebra Capital, remarking the largest deal in a rapidly evolving clean energy industry in India, the Gurgaon-based Indian renewable energy company said in a statement late on Wednesday.

In factuality, SPACs (Special Purpose Acquisition Companies) or blank-cheque firms are shell entities that could be capitalized to take a company public following a merger or acquisition, while the SPACs are allowed to raise funds to finance their mergers or acquisitions through IPOs (Initial Public Offerings) or private fundraising campaign from existing stakeholders.

In tandem, according to the Gurgaon-based Indian renewable energy giant that accounts for roughly a 10 per cent of the country’s entire green energy output, under the terms of the deal, the merger would proffer ReNew $1.2 billion in fresh capitals, while the funds would involve a $855 million in investments from Chamath Palihapitiya, the world’s largest asset management firm BlackRock Inc alongside Sylebra Capital as beforementioned.

ReNew looks to raise 200% of its capacity by 2025 after SPAC merger deal

If truth is to be told, since India, the world’s fifth-largest economy by nominal GDP and third-largest by PPP (Purchasing Power Parity) became a home to the world’s largest emitter of greenhouse gases and looked to raise its renewable energy output to at least 500 Gigawatts or 40 per cent of the country’s entire energy production, the South-east Asia’s largest financial HubSpot emerges as one of the congested green energy markets across the globe.

Amid such renewable industry landscape in the country, an SPAC-merger deal for ReNew to go public in the US money markets, held a substantial scale of significance, as ReNew Chair and Chief Executive Sumanth Sinha was quoted saying in an interview following the announcement that the company was mulling an option to utilize the funds raised in the SPAC-merger deal to increase its output by roughly four-folds to 19 Gigawatts by 2025.