Concord Biotech Invests in Renewable Energy Project, Acquires 27.38% Stake in FSGE
Concord Biotech Limited has entered into a strategic investment in M/s FSGE Renewable Power Private Limited, acquiring a stake intended for developing a Wind Solar Hybrid Power Project crucial to the company’s sustainable growth and operational efficiency. The acquisition involves Concord Biotech investing Rs. 6.3 Crores for 27.38% of equity share capital in FSGE.This strategic move reinforces Concord Biotech's commitment to environmental responsibility. By transitioning into renewable energy sources, the company plans to reduce its carbon footprint and contribute to global efforts against climate change. Beyond the environmental benefits, the investment is expected to provide long-term financial advantages through reduced energy costs and enhanced operational efficiency at the Limbasi Facility.
Investment Details and Project Scope
The acquisition relates to the installation of a hybrid renewable power project in Gujarat. FSGE Renewable Power Private Limited (FSGE) is a Special Purpose Vehicle incorporated for this purpose. The project includes a Wind Capacity of approximately 6.3 MW AC and a Solar Capacity of approximately 6.3 MWp DC.Concord Biotech’s investment, which falls under the purview of a Related Party Transaction due to the equity acquisition, will be conducted on an arm's length basis. The full allotment of shares against the current investment is scheduled within 60 days from the agreement date.
Key details regarding the acquisition and the target entity are summarized below:
| Particular | Detail |
|---|---|
| Target Entity Name | FSGE Renewable Power Private Limited (FSGE) |
| Investment Amount | Rs. 6.3 Crores |
| Shareholding Acquired | 27.38% |
| Consideration Type | Cash Consideration |
FSGE Background and Industry Positioning
FSGE was incorporated on August 19, 2023, and is focused on captive power generation through renewable energy. The company has not yet commenced commercial operations but is set to become an associate of Concord Biotech Limited upon the acquisition. This investment aligns with both companies’ objectives in sustainable growth within the renewable energy sector.A brief look at FSGE's corporate profile:
| Particular | Detail |
|---|---|
| Date of Incorporation | August 19, 2023 |
| Industry | Captive Power Generation through renewable energy |
| Country of Presence | India |
CONCORDBIO Stock Price Movement
On Friday, Concord Biotech Limited shares slipped by 2.41% in the closed market, settling at ₹1315.10. The stock saw a traded volume of 282,224 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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