RIL subsidiary to sell 100% stake to Norway's Elkem ASA for $22 mn

REC Solar Holdings AS, a step-down wholly owned subsidiary of Reliance Industries Limited (RIL) has entered into a share purchase agreement with Norway's Elkem ASA for the sale of its 100% equity stake in REC Solar Norway AS for $22 million, the company said in a regulatory filing on Monday.

REC Norway, a wholly owned subsidiary of REC Solar Holdings AS, is in the business of manufacturing kerf-based polysilicon in Norway. RIL will continue to retain the technology and intellectual property rights pertaining to kerf-based Polysilicon.

Elkem ASA is a silicon-based material provider with approximately NOK 45.9 billion of sales in CY2022. It was founded in January 1904 and is listed on the Oslo Stock Exchange. Elkem ASA does not belong to the Company's promoter, promoter group, and group companies.


REC Norway had a turnover of NOK 1.1 billion in CY2022 and a net worth of NOK 0.3 billion as of December 31, 2022, contributing 0.08% and 0.03%, respectively of annual consolidated turnover and net worth of the company for the financial year 2022-23.

"The above transaction is subject to certain regulatory and other customary closing conditions and is expected to complete by April 2024," RIL said, adding that upon completion of the sale, REC Norway will cease to be a subsidiary of the company. REC Solar Holdings AS and its subsidiaries are engaged in the business of manufacturing and sale of Solar PV HJT cells and modules and will continue to be RIL’s subsidiaries.

On Monday morning, RIL's scrip was trading at Rs 2747.50, up 0.27% on the BSE. Benchmark Sensex was trading 0.94% higher.