UltraTech Cement’s ₹24.3 Crore Renewable Energy Investment

UltraTech Cement Ltd has announced in a stock exchange filing that it has entered into a Power Purchase Agreement and a Share Subscription and Shareholders Agreement to acquire a 26% equity stake in Amplus Omega Solar Private Limited.

Amplus Omega Solar is involved in generating and transmitting renewable energy. This aligns with UltraTech’s strategic goals of meeting its green energy needs, optimising energy costs, and complying with regulatory requirements for captive power consumption under electricity laws. This acquisition underscores UltraTech’s commitment to sustainability and renewable energy integration within its operations.

The acquisition is valued at up to ₹24,30,17,300, reflecting a strategic investment in renewable energy infrastructure.

Notably, the transaction is not categorised as a related party transaction. Neither the promoter nor the promoter group companies have any interest in this proposed acquisition, ensuring that the decision is driven solely by strategic and operational benefits rather than internal affiliations.

Amplus Omega Solar Private Limited, based in Gurgaon, Haryana, is structured as a special purpose vehicle (SPV) for developing and operating specific renewable energy projects. The company’s portfolio includes a 30.85 MW hybrid project with battery storage in Gujarat, along with a 3.54 MW solar project in Rajasthan and Odisha. These projects are intended to operate on a captive basis, directly supplying UltraTech’s energy requirements.

The primary objectives and effects of this acquisition include meeting UltraTech’s growing demand for green energy, optimising its energy expenditure, and ensuring adherence to regulatory frameworks concerning captive power consumption. By acquiring a substantial stake in Amplus Omega Solar, UltraTech aims to secure a reliable and sustainable energy source, which is crucial for its long-term operational efficiency and environmental stewardship.

The acquisition process is expected to be completed within 180 days from the execution date of the Power Purchase Agreement and the Share Subscription and Shareholders Agreement. The nature of the consideration for this transaction is cash, highlighting UltraTech’s robust financial position and its strategic investment in renewable energy resources.

This acquisition represents a significant step for UltraTech Cement Ltd in its journey towards sustainability and energy efficiency. By integrating renewable energy into its operations, UltraTech not only aims to reduce its carbon footprint but also to set a benchmark for the industry in adopting green energy solutions.

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.