DLF Info City Chennai Limited (DICCL), a wholly-owned subsidiary of DLF Cyber City Developers Limited (majority-owned by DLF Limited), has increased its stake in Tulip Renewable Powertech Private Limited (Tulip). This move strengthens DICCL’s position in the renewable energy sector and aligns with its captive power consumption requirements.
DICCL acquired an additional ~4.95% of Tulip’s total paid-up share capital, bringing its overall ownership to ~15.42%. This acquisition ensures compliance with the Electricity Rules, 2005, specifically the Group Captive Scheme, which allows companies to generate their own electricity for internal consumption. Additionally, it fulfils the terms of a Shareholders Agreement between DICCL and Tulip signed on April 4th, 2013, which stipulates a proportional shareholding based on power usage. The transaction was completed with a cash consideration of up to ₹1.22 crore.
DICCL’s move to increase its stake in Tulip is a strategic decision driven by two key factors. Firstly, it allows DICCL to meet its growing captive power needs by directly accessing renewable energy generated by Tulip. This aligns with the company’s commitment to sustainability and reduces reliance on traditional energy sources.
Secondly, the increased ownership provides DICCL with greater influence over Tulip’s operations and future development plans. This could potentially lead to a more secure and reliable renewable energy supply for DICCL while also contributing to the overall growth of Tulip’s renewable energy generation capacity.
Tulip is a company dedicated to the generation of renewable energy. The power generated by Tulip is primarily intended for captive use, complying with the regulations set forth by the Electricity Act, 2003 (as amended). This acquisition positions DLF Info City Chennai Limited as a key player in the company’s future, potentially shaping its trajectory towards becoming a more prominent supplier of clean energy solutions.
DICCL’s increased stake in Tulip represents a significant step towards a more sustainable future for the company. This strategic investment offers several benefits, including cost-effective power generation, reduced reliance on fossil fuels, and potential long-term growth opportunities within the renewable energy sector. As both companies move forward, it will be interesting to see how this collaboration shapes their future endeavours and contributes to the broader clean energy landscape in India.
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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