The Phoenix Mills, along with its subsidiary Offbeat Developers, is investing in O2 Renewable Energy XXVIII to secure renewable energy for captive use. The investment involves subscribing to equity shares and convertible debentures, totaling ₹5,92,97,830. This move aligns with the company’s commitment to using renewable energy generated from a captive plant.
Strategic Investment in Renewable Energy
The Phoenix Mills, alongside its subsidiary Offbeat Developers, has entered into an agreement with JSW Neo Energy and O2 Renewable Energy XXVIII Private Limited to bolster its renewable energy capabilities. The primary goal is to procure renewable energy for captive consumption, underlining a commitment to sustainable practices.
Deal Structure and Financial Details
The investment involves subscribing to equity shares and Series B Compulsory Convertible Debentures in O2 Renewable Energy XXVIII. The total consideration for this investment amounts to ₹5,92,97,830, broken down as follows:
- ₹28,19,780 by The Phoenix Mills for 2,81,978 Equity Shares.
- ₹2,53,78,000 by The Phoenix Mills for 25,378 Series B Debentures.
- ₹31,10,050 by Offbeat Developers for 3,11,005 Equity Shares.
- ₹2,79,90,000 by Offbeat Developers for 27,990 Series B Debentures.
Projected Shareholding and Objectives
Following the investment, the combined shareholding of The Phoenix Mills and Offbeat Developers will not exceed 45% of the equity share capital of O2 Renewable XXVIII on a fully diluted basis. This investment is aimed at meeting captive user requirements and complying with the Electricity Act 2003, ensuring a minimum of 26% shareholding to maintain captive status.
About O2 Renewable Energy XXVIII
O2 Renewable XXVIII, incorporated on July 31, 2024, focuses on developing and constructing solar power projects. JSW Neo Energy is a promoter of O2 Renewable XXVIII. O2 Renewable XXVIII does not have turnover for financial year ended 2024-25.
Source: BSE
