India Cements to Acquire 26% Stake in Amplus TN One Energy for ₹14 Crore
India Cements will acquire a 26% stake in Amplus TN One Energy for up to ₹14.06 crore. The acquisition aims to secure green energy, optimize costs, and meet regulatory captive power consumption norms. Completion is expected within 180 days.
The acquisition of a 26% stake in a renewable energy SPV for ₹14.06 crore is a significant step towards green energy goals and cost optimization, but its immediate financial impact might be moderate given the company's overall scale.
The acquisition is positive as it aligns with the company's strategy to meet green energy needs, optimize costs, and comply with regulations, indicating a proactive approach to sustainability and operational efficiency.
The India Cements Limited (INDIACEM) has announced its entry into Power Purchase Agreements and a Share Subscription and Shareholders Agreement to acquire a 26% equity share capital of Amplus TN One Energy Private Limited. This acquisition is strategic, aimed at meeting the company's green energy needs, optimizing energy costs, and complying with regulatory requirements for captive power consumption under electricity laws.
Amplus TN One Energy Private Limited, incorporated on June 6, 2024, is a special purpose vehicle focused on setting up 41.80 MW (AC) solar power projects integrated with a Battery Energy Storage System (BESS) on a captive basis. These projects are intended to supply renewable power to four cement manufacturing units of India Cements located in Andhra Pradesh and Telangana. The acquisition is structured as a cash consideration, with an equity investment of up to ₹14,06,27,240 (Rupees Fourteen Crore Six Lakh Twenty-Seven Thousand Two Hundred Forty Only).
The acquisition is not a related party transaction, and the promoter, promoter group, or group companies have no interest in the entity being acquired. The completion of this acquisition is anticipated within 180 days from the execution of the agreements.
A plain-language summary of a public exchange filing by The India Cements Limited. Read the original for the full detail.