Craftsman Automation Invests Rs 3.36 Crore in Solarcraft to Secure Captive Power Supply
Craftsman Automation Limited (CAL) has committed an investment of Rs 3,36,00,000 to Solarcraft Power India 24 Private Limited ('Solarcraft'). This investment is part of a broader strategic partnership that includes a Shareholders' Agreement, Securities Subscription Agreement, and a Power Purchase Agreement. The transaction aims to secure solar power for CAL's manufacturing operations through the procurement of renewable energy under the captive consumption provisions of the Electricity Act, 2003.The investment involves subscribing to Equity Shares and Compulsorily Convertible Debentures (CCD) in Solarcraft, which is developing a solar power project in Rajasthan. The capital injection will be made in one or more tranches.
Key Details of the Investment
The partnership facilitates CAL's move toward renewable energy compliance and procurement. The company has entered into arrangements to procure 7.0 MWAC of solar power from the proposed captive solar power project managed by Solarcraft.The financial details and structure of the investment are summarized below:
| Particulars | Detail |
|---|---|
| Target Entity Name | Solarcraft Power India 24 Private Limited |
| Investment Amount | Rs 3,36,00,000 (Rupees Three Crores and Thirty Six Lakhs) |
| Nature of Consideration | Cash consideration |
| Acquired Stake | 26% along with other captive users |
| Investment Instrument | Equity Shares and Compulsorily Convertible Debentures (CCD) |
Solarcraft Profile and Project Scope
Solarcraft, incorporated on June 6, 2023, is dedicated to the development and generation of renewable solar power. The company is currently focused on developing a solar power project in Rajasthan.The profile details for the target entity include:
| Metric | Detail |
|---|---|
| Industry Sector | Renewable Energy / Solar Power Generation |
| Registered Office Location | DLF Cyber City Phase-II, Gurgaon, Haryana |
| Authorized Share Capital | Rs 60,00,00,000 |
| Paid-up Share Capital | Rs 10,00,000 |
Solarcraft's turnover for the financial years FY 2024, FY 2025, and FY 2026 is recorded as Nil. The acquisition is not part of a related party transaction, and neither CAL nor its associated group companies hold any interest in Solarcraft.
The transaction is anticipated to be completed within 270 Days, subject to customary conditions precedent. The investment does not lead to the acquisition of control over Solarcraft.
CRAFTSMAN Stock Price Movement
Today, Craftsman Automation Limited shares edged higher to close at ₹9181.5 after gaining 0.55%. The stock saw a traded volume of 49,254 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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