Shyam Metalics and Energy Limited has signed agreements to acquire a 26% stake in Emerge Green Power Private Limited. This investment includes a Solar Power Purchase Agreement, allowing Shyam Metalics to source solar power as a captive user. This move aligns with the company’s sustainability goals by reducing energy costs and utilizing renewable energy for its operations. The deal is expected to close by May 11, 2026.
Strategic Investment in Solar Power
Shyam Metalics and Energy Limited has entered into an agreement to acquire a 26% equity stake in Emerge Green Power Private Limited. This strategic move involves signing a Solar Power Purchase Agreement (SPPA), positioning Emerge Green Power as a Captive Generator supplying solar power to Shyam Metalics as a Captive User.
Key Terms of the Agreement
The company has also signed a Share Subscription and Shareholders’ Agreement (SSSHA) with EGPPL and EG Green Parks Private Limited for subscribing to 26,000 Equity Shares. Upon completion of this acquisition, Emerge Green Power will become an Associate of Shyam Metalics.
Rationale for the Acquisition
This investment allows Shyam Metalics to utilize solar power for its energy-intensive industrial operations, aiming to reduce dependence on grid power and lower energy costs. The acquisition is projected to:
- Reduce dependency on grid power and lower energy expenses.
- Contribute to environmental goals through greater utilization of green energy.
- Enhance EBITDA margins by decreasing operational expenditure on power.
Financial Details
The cost of acquisition for the 26,000 shares is ₹75,01,260. Each equity share, with a face value of ₹10, was issued at a premium of ₹278.51.
Timeline for Completion
The indicative time period for completion of the acquisition is by May 11, 2026. Emerge Green Power Private Limited, incorporated on February 17, 2025, aims to establish a Solar Power Generation unit.
Source: BSE
