Dalmia Cement Increases Stake to 25.44% in Wind Power Firm O2 Renewable Energy V Private Limited

On August 22, 2024, Dalmia Cement (Bharat) Limited signed addendums to the SPA and PPA to acquire an additional 7.31% equity stake in O2 Renewable Energy V Private Limited, which consists of 2,782,685 equity shares worth ₹3.15 crore.

This acquisition may occur in one or more tranches. As a result, DCBL’s total equity stake in O2 Renewable Energy V Private Limited will increase to 25.44%, totalling 96,81,978 equity shares. The transaction is subject to standard conditions and is expected to be completed within 8 weeks, subject to customary conditions precedent.

The proposed acquisition is not a related party transaction, and neither the promoter nor the promoter group companies are interested in the acquisition. The transaction is conducted at arm’s length. No governmental or regulatory approvals are required for this acquisition.

Purpose and Impact of the Acquisition

The acquisition aims to increase Dalmia Cement (Bharat) Limited’s renewable power supply, aligning with the group’s goal of achieving 100% renewable energy (RE 100) by 2030 and becoming carbon-negative by 2040. The wind power sourced through this acquisition will be used as a captive consumer under the Electricity Act/Rules.

Acquisition Details

The acquisition will be made through a cash consideration. The total cost of acquiring the additional equity is ₹3.15 crore.

About M/s. O2 Renewable Energy V Pvt Ltd

M/s. O2 Renewable Energy V Pvt. Ltd. is a Special Purpose Vehicle (SPV) established to set up a wind power project for captive use in Karnataka. The company was incorporated on May 25, 2022 and operates in India. The acquired entity operates in the power generation industry, focusing on renewable energy.

About Dalmia Bharat Limited

Dalmia Bharat is an Indian company that specialises in cement manufacturing and marketing a variety of cement products. It operates in 2 main segments: cement and refractory. Established as a public limited company on July 12, 2013, its headquarters are in Tiruchirapalli District of Tamil Nadu. The company, along with its subsidiaries, produces 7 types of cement, including OPC 53 Grade, PC 53-S Grade, OPC 43 Grade, PSC, PPC, SRPC, and Masonry cement.

On August 23, 2024, Dalmia Bharat Ltd’s share price opened at ₹1,804.00, touching the day’s low of ₹1,792.60 as of 09:33 AM on the NSE.

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.