Reliance Industries acquires renewable energy firm Kanoda Energy Systems

Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries has acquired major stake in the renewable energy firm Kanoda Energy Systems.

The company entered into a binding agreement with Kanoda Energy Systems Private Limited (“KESL”) for acquisition of equity shares for a cash consideration not exceeding Rs.75crores.

Reliance Industries said in a stock-exchange filing said that the total investment is expected to be completed by March 2020.

On the completion of the investment it will translate into 88% equity stake in KESL on a fully diluted basis.

Incorporated on 24th August 2007 KESL has presence in specialized fields of solar advisory, product design and technology validation and recently forayed into engineering, procurement & construction (EPC) and operation & maintenance (O&M) of solar photovoltaic (PV) systems.

KESL had turnover of Rs.10.54 crore, Rs.1.63 crore and Nil and Net Profit (Loss) of Rs. 81.38 lakhs, Rs. 16.54 lakhs and Rs. (0.51) lakhs in FY 2018, FY 2017 and FY 2016 respectively.

The investment made through wholly-owned subsidiary Reliance Industrial Investments and Holdings Ltd.,will assist in the Reliance group’s initiatives to use renewable energy sources.