UltraTech Cement Limited announced the acquisition of a 26% equity stake in AMPIN C&I Power Forty Four Private Limited. This strategic move involves entering into Energy Supply and Shareholders Agreements to secure green energy. The primary goal is to meet the company’s renewable energy demands, optimize operating costs, and fulfill regulatory requirements for captive power consumption under electricity laws. The consideration for the acquisition is up to ₹15.12 Crore.
Strategic Acquisition for Green Energy Compliance
UltraTech Cement Limited has entered into agreements to acquire a 26% equity share capital in AMPIN C&I Power Forty Four Private Limited. This transaction is aimed at securing essential resources for the cement giant.
Deal Rationale and Objectives
The core motivation behind this acquisition is multi-faceted:
- Meeting the company’s growing green energy needs.
- Optimising energy costs associated with operations.
- Ensuring compliance with mandatory regulatory requirements for captive power consumption under prevailing electricity laws.
Target Entity Details
AMPIN C&I Power Forty Four Private Limited is engaged in the generation and transmission of renewable energy, specifically solar power.
Key details about the target entity, an SPV (Special Purpose Vehicle), include:
- Incorporation Date: 12th August 2025.
- Business Focus: Setting up a 45 MWp DC / 30 MW AC solar power project with battery storage in Golamunda, Kalahandi district, Odisha.
- Turnover: Not applicable, as it is a newly incorporated SPV.
- Country of Presence: India.
Transaction Terms and Completion
The terms of the transaction reveal the following financial commitment and timeline:
- Acquisition Price: Equity investment of up to Rs. 15,12,00,000/- (Rupees Fifteen Crore Twelve Lakh Only).
- Stake Acquired: 26% shareholding/control.
- Consideration Type: Cash consideration.
- Completion Timeline: The acquisition is expected to be finalized within 180 days from the date of executing the Energy Supply Agreement and Share Subscription and Shareholders Agreement.
Regulatory Status
UltraTech confirms that this proposed acquisition is not a related party transaction. Furthermore, the promoter and promoter group companies of UltraTech have no interest in the entity being acquired.
Source: BSE
