SPR Auto Technologies Limited is set to invest up to ₹6 crore to acquire approximately 23.21% of the equity share capital in Sunsure Solarpark Forty Private Limited. This strategic investment, made through a Share Subscription Agreement, is for a group captive solar power project aimed at meeting the company’s green energy requirements and optimizing operational costs. The investment will be made in two tranches by September 24, 2026.
Strategic Solar Power Investment
SPR Auto Technologies Limited, formerly known as Shriram Pistons & Rings Limited, has announced a significant investment in renewable energy. The company has entered into a Share Subscription Agreement (SSA) and a Shareholders’ Agreement (SHA) to subscribe to equity shares in Sunsure Solarpark Forty Private Limited. This initiative represents an aggregate investment of up to ₹6,00,00,000 (₹6 crore).
Acquisition Details and Rationale
Through this investment, SPR Auto Technologies aims to acquire approximately 23.21% of the paid-up equity share capital of Sunsure Solarpark on a fully diluted basis. The purpose of this acquisition is to establish a group captive solar power project, aligning with the objectives of the Electricity Act, 2003. The company anticipates that this project will help meet its green energy needs, optimize energy costs, and comply with regulatory requirements for captive power consumption.
Project and Partnership
Sunsure Solarpark Forty Private Limited is a wholly owned subsidiary of Sunsure Energy Private Limited. The solar project is located in Pathredi, Rajasthan. The company has also entered into a Power Purchase Agreement with Sunsure Solarpark for the procurement of solar power for its manufacturing facility. Sunsure Solarpark, incorporated on January 8, 2025, has not yet commenced commercial operations, and its turnover is currently nil.
Investment Tranches and Timeline
The proposed subscription will be completed in two tranches. The first tranche of ₹90,00,000 (₹0.90 crore) is proposed to be invested on or before September 24, 2026, within 30 days from the execution date, subject to certain conditions. The second tranche of ₹5,10,00,000 (₹5.10 crore) will be invested upon receipt of the Second Tranche Subscription Notice from Sunsure Solarpark, as per the SSA. The aggregate equity subscription amount is ₹6.00 crore, payable in two tranches of ₹0.90 crore and ₹5.10 crore, based on the fair market value of the Equity Shares determined by a valuation report.
Transaction Exclusions
It is confirmed that this proposed acquisition is not a related-party transaction. The promoter, promoter group, and group companies of SPR Auto Technologies have no interest in the entity being acquired. The transaction is being conducted at an arm’s length basis. The industry of the target entity is renewable energy and power generation.
Source: BSE
