Why a Year of Negotiation Left ReNew Shareholders With a Lower Price Than First Offered

ReNew Energy Global entered a scheme of arrangement on 11 August 2026 to be acquired by a consortium led by Canada Pension Plan Investment Board and chief executive Sumant Sinha, valuing the company at $10.2 billion. Shareholders receive $7.02 a share in cash, a 14.52 percent premium to the last close, or may elect to retain their shares. Completion is anticipated in the first quarter of 2027. The purchase price represents 11.21 times EBITDA. The consortium's original non-binding proposal, made a year earlier, was $8 a share.

What are the terms?

Shareholders may take $7.02 a share in cash or elect to remain invested in the private company, a rollover structure that lets holders who believe in the Indian growth story avoid crystallising at this price. Rothschild advised ReNew, with Linklaters on legal. Citi advised the consortium, alongside Freshfields, Anagram Partners and Akin Gump Strauss Hauer & Feld. At $10.2 billion and 11.21 times EBITDA, the transaction implies EBITDA of roughly $0.91 billion. That multiple is the most useful number in the announcement, because disclosed earnings multiples are close to absent from Indian renewables: Enerdatics' benchmark for Indian operating solar since 2023 carries an EV/EBITDA sample of just two transactions, against 13 priced on an enterprise value per MW basis.

What is a scheme of arrangement, and what is a rollover election?

A scheme of arrangement is a court-supervised procedure for acquiring a company, common in jurisdictions following English company law, under which the transaction binds all shareholders once approved by the required majority and sanctioned by the court. It differs from a tender offer in that dissenting holders cannot simply decline; approval by the threshold carries everyone. The rollover election here softens that, allowing shareholders to retain equity rather than accept cash. For a management-led buyout that structure matters, because a chief executive on the buying side creates an obvious conflict, and offering continuing holders the option to stay invested is one way boards address the concern that insiders are acquiring the company below its longer-term worth.

Why did the price fall over a year of negotiation?

Because the market moved against the seller while the parties talked. The consortium's initial non-binding proposal was $8 a share when the stock traded at $6.92, a premium of roughly 15.6 percent. The agreed price of $7.02 represents a 14.52 percent premium, which implies a last close near $6.13. Over the year of negotiation the shares fell roughly 11 percent, and the offer fell 12.3 percent. The premium is therefore almost unchanged while the absolute price is materially lower, which is the outcome a buyer achieves by negotiating patiently in a falling market. Shareholders who saw an $8 headline a year ago are being asked to accept $7.02 today at a premium that looks similar on paper.

Enerdatics' data puts the transaction in a wider context of take-private activity and Indian consolidation. Enerdatics recorded $52 billion of disclosed global renewable deal value in the first quarter of 2026, up from $29 billion a year earlier, with North America alone accounting for $46 billion driven by private-equity-led take-privates including AES at $33 billion and Boralex at $7 billion. India has followed a different route, with domestic conglomerates and utilities absorbing platforms as international sponsors exit, visible in Shell's $1.8 billion Sprng Energy sale and in Serentica's ₹2,200 crore purchase of 1.44 GW from Statkraft. ReNew has been an active seller into that market throughout, including a 1.4 GWp operating solar portfolio sold to RPSG's Purvah Green at an enterprise value of ₹4,859 crore, announced the same day as this scheme.

What does the deal signal for Indian renewables?

The deal signals that public markets have not valued Indian renewable platforms on terms their managements accept, and that pension and sovereign capital is willing to own them privately instead. A listed developer trading at a level its own chief executive considers too low, taken private by an investor managing $793.3 billion, is a judgement about the venue rather than about the assets. Expect further take-privates of listed renewable platforms where a large shareholder already sits on the register, and expect Indian platform valuations to be set increasingly by private transactions rather than by screen prices.

The asset sales alongside the process deserve attention. ReNew agreed the disposal of 1.4 GWp of operating solar to Purvah Green as the scheme was being signed, which is either balance sheet preparation ahead of a change of control or evidence that the platform is worth more disassembled than whole. Either reading matters for anyone valuing comparable Indian portfolios, because the take-private multiple of 11.21 times EBITDA and the roughly $0.39 million per MWp implied on the Purvah transaction are two very different ways of pricing the same company's assets. Completion is not due until the first quarter of 2027, so there is time for both to be tested.

Key takeaways

• ReNew Energy Global entered a scheme of arrangement on 11 August 2026 to be acquired by a consortium led by CPP Investments and chief executive Sumant Sinha at $10.2 billion, or $7.02 a share in cash, with completion anticipated in the first quarter of 2027.
• The price represents 11.21 times EBITDA, implying EBITDA of roughly $0.91 billion, and a 14.52 percent premium to the last close.
• The consortium's original non-binding proposal a year earlier was $8 a share against a then share price of $6.92, so the offer fell 12.3 percent while the shares fell around 11 percent and the premium stayed broadly unchanged.
• Shareholders may elect to retain their shares rather than take cash, a rollover option relevant to a transaction in which the chief executive sits on the buying side.
• Enerdatics recorded $52 billion of disclosed global renewable deal value in the first quarter of 2026, with North American take-privates including AES at $33 billion and Boralex at $7 billion driving the increase.

Frequently asked questions

How much are ReNew shareholders receiving?Shareholders receive $7.02 a share in cash, valuing the company at $10.2 billion, a premium of 14.52 percent to the last close. They may alternatively elect to retain their shares and remain invested in the private company.

Why is the final price lower than the original offer?The consortium's initial non-binding proposal was $8 a share when the stock traded at $6.92. Over roughly a year of negotiation the share price fell to around $6.13, and the agreed price of $7.02 preserves a similar percentage premium at a materially lower absolute level.

What multiple is being paid for ReNew?The purchase price represents 11.21 times EBITDA, which implies EBITDA of roughly $0.91 billion at a $10.2 billion valuation. Disclosed earnings multiples are rare in Indian renewables, so this is an unusually visible benchmark for the market.

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