The Canada Pension Plan Investment Board (CPPIB) is considering buying ReNew Energy Global (RNW) outright and taking the company private.
According to multiple media reports, CPPIB is considering making a tender offer to the renewable energy company that is based in India.
The Canada Pension Plan already holds a majority stake in ReNew Energy, which has a market capitalization of $2.2 billion U.S.
CPPIB bought $268 million U.S. worth of ReNew Energy shares from American investment bank Goldman Sachs (GS) earlier in March, giving Canada Pension a 51.6% stake.
India has set a target to triple its non-fossil fuel power capacity to 500 gigawatts by 2030.
ReNew Energy’s stock rose 22%, its biggest one-day gain ever, on reports that CPPIB plans to take the company private.
However, ReNew Energy’s stock is still down 33% over the last 12 months and trading at $5.36 U.S. per share. Earlier in March, the stock fell to an all-time low of $4.04 U.S. per share.
Through five years, ReNew Energy’s stock is down 42%.