S.J.S. Enterprises to Acquire 7.34% Stake in Suryaurja One for Solar Power Supply

On August 29, 2024, S.J.S. Enterprises Limited announced a strategic move to enhance its sustainability efforts by finalising an agreement for a solar power initiative. The company has entered a Share Subscription & Shareholders’ Agreement and a Power Supply & Offtake Agreement with Sunsource Energy Private Limited (SEPL) and Suryaurja One Private Limited (SOPL). This partnership will enable S.J.S. Enterprises to secure up to 3 megawatts peak (MWp) of solar power.

Under the terms of the agreement, S.J.S. Enterprises will subscribe to 10,50,000 Class A Equity Shares of SOPL at a subscription price of ₹10 per share, amounting to a total investment of ₹1,05,00,000. Following this subscription, the company will hold a 7.34% stake in SOPL. SOPL, incorporated on August 29, 2021, is focused on establishing solar power generation facilities and is managed by its majority shareholder, SEPL. The project will involve the setup of a solar photovoltaic (PV) power plant with an installed capacity of 3.0 MWDC, translating to approximately 2.0 MWAC.

The new solar power plant, planned for installation at Korwar – Indhanakal, Taluk Chitapura, District Kalaburgi, Karnataka, will serve as a captive power project in alignment with the Electricity Act 2003 and Electricity Rules 2005. This initiative is a significant step towards reducing the company’s carbon footprint and ensuring a sustainable energy supply.

The total cost for acquiring the equity shares in SOPL is ₹1,05,00,000, reflecting the investment in renewable energy that aligns with the company’s long-term goals for sustainability and cost management. The solar power plant is expected to be completed by January 30, 2025, positioning S.J.S. Enterprises as a proactive player in the renewable energy sector.

On August 30, 2024, the share price of SJS Enterprises Ltd opened at ₹982.00, touching the day’s low at ₹964.55, as of 9:36 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.