Coal India Approves Rs 30 Lakh Investment in Subsidiary's Rights Issue
Coal India Limited's board approved investing ₹22.20 Lakh in its subsidiary, CIL Rajasthan Akshay Urja Limited (CRAUL), via a rights issue. CRAUL, a renewable energy joint venture, has a paid-up capital of ₹10 Lakh. The investment aims to develop solar and wind power projects. The acquisition is expected to be completed within 30 days.
The investment amount is relatively small compared to Coal India's overall scale, but it signifies a strategic move into the renewable energy sector, which can have long-term implications.
The investment in a subsidiary for renewable energy projects is a positive step towards diversification and future growth.
Coal India Limited (CIL) has announced its board's approval for an investment in the Rights Issue of its subsidiary, CIL Rajasthan Akshay Urja Limited (CRAUL). The investment will be made by Coal India Limited.
CRAUL is a joint venture between Coal India Limited and Rajasthan Rajya Vidyut Urja Nigam Limited (RVUNL). The paid-up capital of CRAUL is ₹10,00,000 (Rupees Ten Lakh only), with CIL holding ₹7,40,000 and RVUNL holding ₹2,60,000. Currently, CRAUL has a NIL turnover.
The company being acquired belongs to the Renewable Energy industry. Its objectives include developing, constructing, and operating solar power projects, PSP projects, and wind power projects. The business involves selling generated power to RVUNL or other entities as mutually agreed upon, in accordance with applicable laws. The acquisition is not considered a related party transaction.
The consideration for the investment is cash, involving the subscription of equity share capital. Coal India Limited will subscribe to 2,22,000 equity shares at ₹10 each, amounting to ₹22,20,000. Rajasthan Rajya Vidyut Urja Nigam Limited will subscribe to 78,000 equity shares at ₹10 each, amounting to ₹7,80,000. Following this rights issue, CIL will hold 74% and RVUNL will hold 26% of CRAUL.
CIL Rajasthan Akshay Urja Limited was incorporated on June 9, 2025. There is no history of turnover for the last three years as it is a newly incorporated entity. The company has its presence in India. The indicative time period for the completion of the acquisition is 30 days from the date of opening of the Rights Issue.
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Coal India Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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