India Cements Acquires 12.48% Stake in FPEL for Green Energy Supply
The India Cements Limited has entered into an agreement to acquire a minority stake in FPEL SERVICES PRIVATE LIMITED, a company focused on renewable energy generation and transmission. This strategic acquisition is intended by the cement manufacturer to meet its green energy requirements, optimize energy costs, and ensure compliance with regulatory obligations related to captive power consumption under electricity laws.The target entity, FPEL SERVICES PRIVATE LIMITED, operates within the industry of generation and transmission of renewable energy (wind power). The acquisition involves a cash consideration representing an equity investment of up to Rs. 10,78,00,000/- (Rupees Ten Crore Seventy Eight Lakh Only).
FPEL SERVICES PRIVATE LIMITED is described as a special purpose vehicle (SPV) that will supply 14 MW AC wind power to India Cements' plants in Tamil Nadu. The power will be sourced from a wind project located in Karur village, Tamil Nadu, and the consumption of this power will occur on a captive basis.
Key details regarding the acquisition and the target entity are summarized below:
| Particular | Details |
|---|---|
| Target Entity | FPEL SERVICES PRIVATE LIMITED |
| Industry | Generation and transmission of renewable energy (wind power) |
| Acquired Stake | 12.48% equity shareholding |
| Purpose of Acquisition | To meet green energy needs, optimize costs, and comply with regulatory requirements for captive power consumption. |
| Consideration | Cash consideration |
| Cost of Acquisition | Up to Rs. 10,78,00,000/- |
As part of the agreement structure, an Energy Supply Agreement, Share Subscription, and Shareholders Agreement have been executed between the parties. The indicative time period for the completion of this acquisition is set at within 180 days from the execution of these agreements.
FPEL SERVICES PRIVATE LIMITED was incorporated on December 14, 2022, and its registered office is located in Hyderabad, Telangana, India. The company has reported Nil turnover over the last three years.
INDIACEM Stock Price Movement
The India Cements Limited shares today shed 0.81% of their value, settling at ₹375.9 in post-market trading. The equity witnessed a total traded volume of 94,076 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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