The India Cements Limited has announced its acquisition of a 26% equity share capital in Amplus TN One Energy Private Limited. This strategic move aims to fulfill the company’s green energy requirements, optimize energy costs, and comply with regulatory mandates for captive power consumption. The acquisition involves entering into Power Purchase Agreements and Share Subscription and Shareholders Agreements, with an indicative completion period of 180 days.
Strategic Renewable Energy Acquisition
The India Cements Limited has entered into agreements to acquire a 26% equity share capital in Amplus TN One Energy Private Limited. This new entity is engaged in the generation and transmission of renewable energy, specifically focusing on solar power projects integrated with Battery Energy Storage Systems.
Rationale and Objectives
The primary objectives behind this acquisition are to meet the company’s increasing demand for green energy, optimize overall energy costs, and ensure compliance with regulatory requirements pertaining to captive power consumption under prevailing electricity laws. This aligns with a broader industry trend towards sustainable energy solutions.
Deal Structure and Financials
The acquisition will be executed through Power Purchase Agreements and a Share Subscription and Shareholders Agreement. The consideration for this equity investment is up to ₹14,06,27,240/- (Rupees Fourteen Crore Six Lakh Twenty-Seven Thousand Two Hundred Forty Only). The acquisition is expected to be completed within 180 days from the execution of these agreements.
Target Entity Details
Amplus TN One Energy Private Limited, incorporated on June 6, 2024, is a special purpose vehicle. Its projects are dedicated to supplying renewable power to four cement manufacturing units operated by The India Cements Limited in Andhra Pradesh and Telangana. The company has reported nil turnover for the last three financial years, reflecting its nascent stage and project-specific focus.
Source: BSE
