Bharat Forge and Subsidiaries to Acquire Stakes in Sunsure Energy SPVs

Bharat Forge Limited has announced a strategic partnership with its subsidiaries, J S Auto Cast Foundry India Private Limited (a wholly-owned step-down subsidiary) and Kalyani Centre for Precision Technology Limited (a wholly-owned subsidiary), through share subscription and shareholders agreements (SSSHA) with special purpose vehicles (SPVs) of Sunsure Energy Private Limited. This collaboration aims to secure renewable energy under the group captive scheme outlined in the Electricity Act, 2003.

The SPVs involved are Sunsure Solarpark Twenty Eight Private Limited (Sunsure 28) and Sunsure Solarpark Twenty Three Private Limited (Sunsure 23). Both companies were incorporated in 2024 and focus on the development, construction, operation, and maintenance of power plants across India. Given their recent establishment, neither Sunsure 28 nor Sunsure 23 reported any turnover for the financial year 2023-24.

The primary goal for Bharat Forge, J S Auto, and KCPTL in pursuing these acquisitions is to meet their renewable energy requirements effectively. This initiative aligns with the growing emphasis on sustainable energy solutions and supports Bharat Forge’s commitment to reducing its carbon footprint. The partnership reflects a proactive approach to integrating renewable energy sources into the company’s operations, further enhancing its sustainability initiatives.

In terms of financial commitments, Bharat Forge will invest approximately ₹1.29 crore for a 15.64% equity stake in Sunsure 28. J S Auto Cast Foundry India will allocate around ₹10.29 crore to acquire a 31.57% equity stake in Sunsure 23, while Kalyani Centre for Precision Technology will also invest ₹1.29 crore for a similar 15.64% stake in Sunsure 28. The combined efforts of these entities will result in a robust portfolio of renewable energy assets.

The acquisition process is contingent upon the completion of specific conditions outlined in the definitive documents. Bharat Forge will provide further updates once the transaction is finalised. This move not only enhances the company’s energy sustainability but also positions it strategically within the rapidly evolving renewable energy sector in India.

By investing in these SPVs, Bharat Forge and its subsidiaries are taking significant steps toward ensuring a stable and sustainable energy supply, which is vital for their operational efficiency and long-term growth. The partnership with Sunsure Energy represents a forward-thinking strategy in an industry that is increasingly prioritising renewable energy sources, making it a crucial milestone in Bharat Forge’s ongoing transformation and commitment to environmental stewardship.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.