The India Cements Limited has announced the acquisition of a 12.48% equity share capital in FPEL SERVICES PRIVATE LIMITED, a company focused on renewable energy generation and transmission. This strategic move aims to secure the company’s green energy needs, optimize energy costs, and comply with regulatory requirements for captive power consumption. The acquisition involves an equity investment of up to ₹10.78 crore and is expected to be completed within 180 days.
Strategic Renewable Energy Acquisition
The India Cements Limited has entered into an Energy Supply Agreement and Share Subscription and Shareholders Agreement to acquire a 12.48% stake in FPEL SERVICES PRIVATE LIMITED. This target entity is actively involved in the generation and transmission of renewable energy. The primary objectives behind this acquisition are to meet the company’s increasing green energy demands, achieve greater optimization of energy costs, and ensure compliance with regulatory mandates concerning captive power consumption under prevailing electricity laws.
Deal Rationale and Financials
The proposed acquisition is classified as a non-related party transaction, with no direct interest from the promoter or promoter group companies in the entity being acquired. The cost of acquisition, or the price at which the shares are acquired, is an equity investment of up to ₹10,78,00,000/- (Rupees Ten Crore Seventy Eight Lakh Only). The acquisition is anticipated to be completed within 180 days from the execution of the relevant agreements.
Target Entity Profile
FPEL SERVICES PRIVATE LIMITED operates as a special purpose vehicle (SPV). Its registered office is located at Plot No N46, House No 4-9-10 HMT Nagar, Hyderabad, Telangana. The company is set to supply 14 MW AC wind power to The India Cements Limited’s plants in Tamil Nadu on a captive basis. This power will be generated from a wind project situated in Karur village, Tamil Nadu. FPEL SERVICES PRIVATE LIMITED was incorporated on 14th December 2022, and its turnover for the last three years is reported as Nil.
Source: BSE
