DLF Cyber City Developers Limited, a material subsidiary of DLF Limited, has executed an agreement to acquire approximately 26.97% equity shares in Balang Renewables Private Limited. The transaction, valued at ₹4.20 crore cash consideration, involves a subsidiary named ‘DLF Info Park Developers (Chennai) Limited’. This acquisition is strategic for securing captive power through a Power Purchase Agreement, supporting the target entity’s renewable energy business.
Strategic Acquisition in Renewable Energy
DLF Limited announced that its material subsidiary, DLF Cyber City Developers Limited, is expanding its interests in the renewable energy sector. Through its own subsidiary, ‘DLF Info Park Developers (Chennai) Limited’ (referred to as the ‘Acquirer’), a Share Purchase and Shareholders Agreement has been executed to acquire a significant stake in Balang Renewables Private Limited (the ‘Target Entity’).
Transaction Details
The acquisition involves approximately 26.97% equity shares of the Target Entity and is being undertaken for a cash consideration of ₹4.20 crore. Balang Renewables Private Limited is engaged in the development, operation, and maintenance of renewable energy plants, including supplying green power. This move aligns with the Acquirer’s requirement to subscribe to at least 26% of the equity share capital of a renewable energy entity to qualify as a ‘Captive User’ under the Electricity Act, 2003.
Target Entity Overview
The Target Entity, Balang Renewables Private Limited (‘BRPL’), incorporated on February 9, 2024, is primarily involved in providing solar power solutions. Its business encompasses consulting, design, engineering, fabrication, installation, commissioning, and monitoring of distributed rooftop solar power plants. These plants are intended for the captive consumption of commercial and industrial customers in India. The latest reported financial parameters for BRPL show a turnover of Nil, a PAT of (₹0.02) crore, and a Net-worth of (₹0.03) crore.
Acquisition Rationale and Timeline
The acquisition’s primary objective is to cater to the rising demand for electricity through environmentally friendly energy solutions. The transaction is expected to be completed within 30 days from the execution of the transaction documents. No governmental or regulatory approvals were deemed immediately applicable for this acquisition.
Source: BSE
