From CPPIB ReNew Power receives a $400 million boost
- ByStartupStory | November 14, 2022
With a $1 billion investment, Goldman Sachs co-founded ReNew Power with Sumant Sinha in 2011 and rose to the position of the company’s single largest stakeholder; however, Goldman Sachs no longer holds the majority of the company’s shares. According to insiders, the Wall Street investment bank further reduced its shareholding in the Nasdaq-listed business last month, making Canadian Pension Plan Investment Board (CPPIB) the company’s largest stakeholder.
An existing investor, it has invested an additional $400 million to purchase more shares from Goldman Sachs at a price of $6.50 apiece. This increases CPPIB’s ownership of the voting rights connected to outstanding shares of the corporation to 31.5%. On Goldman’s current shares, it will also enjoy the right of first offer According to the sources, Goldman’s ownership of all share classes in ReNew has decreased to roughly 12%, with a low single-digit voting stake, in the company’s publicly traded US parent, ReNew Energy Global Plc.
Up to the time of publication, CPPIB, Goldman Sachs, and ReNew Power declined to respond to ET.
About CPPIB
First, in 2018, CPPIB invested $392 million in ReNew. After ReNew abandoned its plans for an IPO in India in 2018, CPPIB made its first investment in the company, committing about $392 million at a valuation of $2.2 billion. The private company’s transaction price per share was Rs 410 at the time because it was based in India.
Goldman sold 3.4 million Class C shares and 18 million Class A shares of the firm to CPPIB in February of this year for $139 million at a comparable $6.50 per share price. The investment increased the Canadian pension fund’s economic interest to 14% and increased its voting rights to 26.2% from 20.1%. In addition, for an additional $58.5 million, it agreed to purchase 9 million additional Class C shares from Goldman at the same price. This happened six months after ReNew’s IPO, shortly after the company announced a $250 million share buyback
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