On June 8, 2024, Dalmia Cement (Bharat) Limited (DCBL), a wholly-owned subsidiary of Dalmia Bharat Limited, entered into a Share Subscription Agreement, Shareholders Agreement, and Power Purchase Agreement. These agreements enable DCBL to acquire a 26% stake in the equity share capital and 26% of the compulsory convertible debentures of Solarcraft Power India 23 Private Limited.
This acquisition aims to secure up to 46.88 MW of solar power for captive use in Karnataka. The deal includes the purchase of 1,03,17,500 equity shares valued at ₹10.31 crore and 84,37,500 compulsory convertible debentures worth ₹8.43 crore, both in one or more instalments. The transaction is expected to close within 60 days, pending customary conditions.
The entity being acquired operates in the power generation industry. This acquisition aims to boost the company’s renewable energy supply, supporting the group’s goals of achieving 100% renewable energy (RE 100) by 2030 and becoming carbon-negative by 2040. The solar power obtained from this acquisition will also qualify as a captive consumer under the Electricity Act/Rules.
The acquisition will be made through cash consideration. The acquisition cost includes 1,03,17,500 equity shares totalling ₹10.31 crore and 84,37,500 compulsory convertible debentures totalling ₹8.43 crore, both in one or more tranches.
M/s. Solarcraft Power India 23 Private Limited is a Special Purpose Vehicle (SPV) established to develop a solar power project on a captive basis in Karnataka. The company was incorporated on June 16, 2023. Since it was incorporated in the fiscal year 2023-24, its turnover for the last three years is NIL. The company operates solely in India.
Established in 1939, Dalmia Bharat is a prominent player in the cement industry in India. Based on installed capacity, it ranks as the fourth largest cement producer in the country. It focuses on the manufacturing and distribution of cement.
On June 10, 2024, Dalmia Bharat share price opened at ₹1,825.00, touching the day’s high of ₹1,847.05 as of 10:09 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.
Published on: Jun 10, 2024, 1:45 PM IST
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