Birla Corp Subsidiary RCCPL Acquires 3.12% Stake in Continuum to Enhance Renewable Energy

RCCPL Private Limited, a wholly owned subsidiary of Birla Corporation Ltd, signed a Share Purchase Agreement (SPA) and a Power Purchase Agreement (PPA) on August 30, 2024.

Through these agreements, RCCPL will acquire a 3.12% equity stake in Continuum MP Windfarm Development Private Limited, which includes purchasing 13,915,200 equity shares totalling ₹13,91,52,000. This acquisition will allow RCCPL to source wind-solar power as a captive consumer with a capacity of up to 12 MW from a project situated in Jaora, Madhya Pradesh.

The acquisition is not classified as a related party transaction under the Companies Act of 2013, and the promoters or promoter group have no interest in Continuum. No specific governmental or regulatory approvals are required for this acquisition. The transaction is expected to be completed by October 31, 2024, subject to standard conditions.

Objective of Acquisition

Continuum operates in the power generation industry, and this acquisition aims to enhance the company’s renewable power supply by up to 12 MW for its plant in Maihar. This Wind-Solar Hybrid Project will qualify as a captive consumer under the Electricity Act/Rules.

Acquisition Details

The acquisition will be made through cash consideration, with the payment processed via an online banking system. It involves purchasing 1,39,15,200 equity shares, each with a face value of ₹10. The total cost of the acquisition is ₹13,91,52,000. The acquisition represents a 3.12% equity stake in Continuum MP Windfarm Development Private Limited.

About Continuum MP Windfarm Development Private Limited

Continuum MP Windfarm Development Private Limited is involved in the power sector, focusing specifically on generating, distributing, transmitting, and supplying power, emphasising renewable energy development. The company was incorporated on July 2, 2015. The company operates solely within India.

About Birla Corporation Ltd

Birla Corporation Ltd, founded in 1919 by Ghanshyam Das Birla, is an Indian multinational conglomerate headquartered in Kolkata. The company operates in various sectors, including cement, jute, linoleum, automotive tyres, caustic soda, and rayon. Birla Corporation Ltd’s main products are cement, jute, linoleum, and automotive tyres. Under the brand name Birla Cement, the company produces various cement products used in residential and commercial construction. It also manufactures jute items like jute yarn and jute bags for packaging and other industrial uses.

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.