Syngene International is investing in O2 Renewable Energy V Private Limited (O2 RE V) to source renewable power. The investment involves acquiring equity stake from Dalmia Cement (Bharat) Limited. The investment amount is revised to Rs. 35 million. This strategic move ensures captive status as per Electricity Act and supports the company’s commitment to utilizing renewable energy.
Investment in Renewable Energy
Syngene International is proceeding with an investment in O2 Renewable Energy V Private Limited (O2 RE V) to strengthen its renewable energy sourcing capabilities. The decision comes after considering regulatory changes affecting solar power utilization and extended timelines for wind energy infrastructure.
Revised Strategy
Instead of the previously planned investment in O2 Renewable Energy II Private Limited (O2 RE II), the company will now invest in O2 RE V, another SPV of the O2 Group. O2 RE V has existing wind assets, offering a more immediate renewable energy solution.
Financial Details
The investment amount is revised to Rs. 35 million, which will be used to acquire an equity stake from Dalmia Cement (Bharat) Limited. This investment will allow Syngene to source power from O2 RE V through a Power Purchase Agreement and Share Purchase Agreement.
O2 Renewable Energy V Details
O2 RE V was incorporated on May 25, 2022. It is engaged in power generation from 2.2 MW of Wind Power and 3.125 MW ac of Solar Power from a Wind-Solar Hybrid power plant located in Kudligi, Bellary District, Karnataka. As of the financial year 2024-25, O2 RE V’s turnover was Rs. 20,29,37,390/-.
Strategic Rationale
This investment allows Syngene International, along with other captive investors, to acquire and maintain a minimum 26% stake in O2 RE V. This ensures captive status as per the Electricity Act and Share Purchase Agreement. The acquisition is expected to be completed on or before March 31, 2026.
Source: BSE