Carborundum Universal Enters Power Purchase Agreement with Putrim Renewables for Green Energy Adoption
Carborundum Universal Limited has entered into a Power Purchase Agreement (PPA) as part of its Environmental, Social, and Governance (ESG) strategy aimed at increasing the consumption of green power for its operations. The agreement is with Putrim Renewables Private Limited (PRPL), a Mumbai-based subsidiary of CSE Development (India) Private Limited, also known as Cleantech.The PPA secures a contracted capacity of 18 MWp from PRPL's captive solar power plant located in Thoothukudi, Tamilnadu.
In addition to the PPA, Carborundum Universal Limited will execute a Share Subscription and Shareholders' Agreement with Cleantech and PRPL. This transaction involves the acquisition of 29.58% equity shares in PRPL at an investment amounting to about Rs. 6.48 crores. This financial investment is intended to enable the Company to obtain solar power necessary for running its various plant operations in Tamilnadu.
Details of the Acquisition in Putrim Renewables Private Limited
The proposed investment and acquisition details reveal that the target entity, M/s. Putrim Renewables Private Limited, has a Networth of Rs. 130,772 and currently reports Nil turnover, as the company has not yet commenced operations.The acquisition is noted as neither a related party transaction, nor does the promoter or promoter group of the Company have any interest in the target entity. The industry for the target entity is specified as a Special Purpose Vehicle for generation of solar power, which will function as a captive power plant under the Electricity Act, 2003, generating and supplying green power to meet the consumption requirements of its shareholders—the Captive Users.
The proposed investment aligns with the Company's sustainability goals, aiming to increase the proportion of usage of clean green power in its manufacturing facilities in Tamil Nadu, moving away from traditional sources.
Key financial and timeline details related to the acquisition are summarized below:
| Particulars | Detail |
|---|---|
| Cost of Acquisition | Rs. 6.48 crores |
| Percentage of Shareholding Acquired | 29.58% |
| Consideration Nature | Cash consideration met out of internal accruals |
| Indicative Time Period for Completion | 60 days from date of signing Power Purchase Agreement |
Putrim Renewables Private Limited, the investee company, was incorporated on 09-02-2024 in India. It intends to develop and operate the captive power plant for generating and supplying renewable electricity utilized for the captive consumption requirements of its shareholders. The Company plans to grow its operations, and this move is viewed as supporting its EHS strategy.
CARBORUNIV Stock Price Movement
Today, Carborundum Universal Limited shares edged higher to close at ₹895.45, marking a gain of 4.30%. The stock showed considerable investor interest, settling on a total traded volume of 328,309 shares.Source:
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