Phoenix Mills’ subsidiary, Classic Mall Development Company, has partnered with Torrent Green Energy and Torrent Urja 22 via a Share Subscription and Shareholders’ Agreement (SSSA). The agreement involves subscribing to 70,19,386 Class A Equity Shares of Torrent, valued at ₹10 each, to secure renewable energy for Classic Mall. A Power Supply Agreement ensures Torrent will supply solar power under the terms of the deal.
Renewable Energy Partnership
Classic Mall Development Company, a wholly-owned subsidiary of Phoenix Mills, has entered into a Share Subscription and Shareholders’ Agreement (SSSA) with Torrent Green Energy Private Limited and Torrent Urja 22 Private Limited (‘Torrent’). This partnership aims to secure a renewable energy supply for Classic Mall.
Share Subscription Details
Under the agreement, Classic Mall will subscribe to 70,19,386 Class A Equity Shares of Torrent, with a face value of ₹10 each. This investment is specifically earmarked for purchasing renewable energy (electricity) generated from Torrent’s captive generating plant.
Power Supply Agreement
In conjunction with the share subscription, Classic Mall has also signed a Power Supply Agreement with Torrent. According to the terms, Torrent, acting as the power producer, will supply solar power to Classic Mall.
Strategic Rationale
The subscription of shares enables Classic Mall to become a Captive User, facilitating the consumption of solar power generated by Torrent. This move aligns with the Electricity Act 2003 and Electricity Rules 2005, mandating a minimum 26% shareholding to comply with captive status requirements. The object of acquiring shares is to meet the requirements under the Electricity Act 2003.
Source: BSE