ReNew Power Private has announced the completion of its merger with Nasdaq-listed special purpose attainment firm (SPAC) RMG Acquisition Corp. II (RMG II).

The merger raises an enterprise value of around $8 billion and an equity value of $4.4 billion on the new entity, ReNew Energy Global Plc.

SPACs are publicly traded shell companies that unite with unlisted companies to take them public, skipping the time-consuming conventional route of initial public offering (IPO). Indian green energy firms are exploring this option amid a growing focus on environmental, social and governance (ESG) investing.

“As a result of the business combination, RMG II has become a wholly owned subsidiary of “ReNew Energy Global plc" (the post-combination entity referred to in the remainder of this release as “ReNew"). Commencing at the open of trading on August 24, 2021, ReNew’s Class A ordinary shares and ReNew’s warrants are expected to commence trading on The Nasdaq Stock Market LLC (“Nasdaq") under the symbols “RNW" and “RNWWW," respectively," ReNew Power said in a statement on Tuesday.

The $1.2 billion equity proceeds from the ReNew Power merger with RMG II includes a private investment in public equity (PIPE) deal of $855 million. The PIPE investors include BlackRock, BNP Paribas Energy Transition Fund, Chamath Palihapitiya, Sylebra Capital, TT International Asset Management Ltd, TT Environmental Solutions Fund and Zimmer Partners.

The statements says, “As a result of this transaction ReNew has received $610 million in net proceeds, consisting of funds from RMG II’s former trust account and from a private placement in public equity (PIPE), after redemptions and transaction fees."

ReNew Power operates 6.24 gigawatt (GW) of solar and wind power, with a total capacity of around 10 GW as of 31 December last year. In 2018, it had acquired 1.1GW of wind and solar power assets from Ostro Energy—one of the biggest acquisitions in the Indian renewable energy space.

Sumant Sinha, CEO, ReNew says, “The completion of our business combination with RMG II begins a new era for our company, and is a great step forward for enabling further decarbonization of the Indian power sector."

ReNew Power is among the earliest entrants in India’s green economy. ReNew Power’s existing shareholders include Goldman Sachs, Canada Pension Plan Investment Board, Japan’s JERA Co. Inc., Abu Dhabi Investment Authority, GEF SACEF India and Sumant Sinha.