Glenmark Pharmaceuticals has acquired a 34% stake in O2 Renewable Energy XXIV Pvt. Ltd., investing ₹1.99 crore. This aligns with its commitment to becoming carbon neutral by 2030 and enhancing renewable energy use, the company said in a press release on the stock exchanges.
This investment supports Glenmark’s goal of becoming carbon neutral by 2030, with a particular focus on increasing the share of renewable energy in its business. The deal is in line with Indian electricity laws, which require companies to be captive users of renewable energy for compliance.
The acquisition, finalised through a Securities Subscription & Shareholder’s Agreement (SSSA), is expected to provide Glenmark with a significant opportunity to invest in solar and other renewable energy projects. With an investment of ₹1.99 crores, Glenmark has subscribed to 34% equity shares and 34.57% compulsory convertible debentures in the newly formed special purpose vehicle (SPV).
O2 Renewable, incorporated in February 2024, is focused on generating, transmitting, and distributing renewable energy. The company, based in India, is aiming to scale its operations in the growing renewable energy sector.
The acquisition does not require any regulatory approvals and will be reviewed after three years. Glenmark’s involvement will further enhance the scope of its sustainability initiatives, driving the company towards meeting its long-term carbon-neutrality objectives.
On December 19, Glenmark Pharmaceutical’s share price traded 1.43% higher at ₹1,546.50 by 12:30 PM on the NSE. The stock opened at ₹1,505.65, lower than ₹1,524.70 at the previous close.
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.
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