JK Cement Invests in Mehrauni Electro Power to Bolster Renewable Energy Strategy
JK Cement Limited announced a strategic investment in Mehrauni Electro Power Private Limited (SPV) to strengthen its commitment to the renewable energy sector. The investment involves the acquisition of equity shares, positioning the company to capitalize on solar power generation projects.The company has subscribed to 21,00,000 equity shares of Mehrauni Electro Power Private Limited. These shares have a face value of Rs. 10/- per share, aggregating to Rs. 2,10,00,000 (Rupees Two Crore Ten Lakh only). This transaction grants JK Cement a 9.77% stake in the SPV.
The investment was structured via a Share Subscription and Shareholders' Agreement (SSHA) and will be made through cash consideration.
Strategic Focus on Solar Power
The strategic move aligns with the company's long-term renewable energy goals. This investment is specifically related to a solar power project involving a 40 MW AC capacity solar power plant. This plant is situated at Village-Bihariya, Tehsil-Bara, Prayagraj District, Uttar Pradesh, and operates on a Group Captive model envisaged under the Electricity Laws. Under a Power Purchase Agreement (PPA) with MEPPL and Onward Solar Private Limited, the project aims to supply 7 MWp solar power to the company's Prayagraj plant.Details of Target Entity
Mehrauni Electro Power Private Limited (MEPPL) is a Special Purpose Vehicle (SPV) incorporated under the Companies Act, 2013, and was established by Onward Solar Power Private Limited. Its registered office is located at 904, 9th Floor, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, Delhi - 110 034.The acquisition does not fall under a related party transaction, and the promoter group does not hold any interest in the SPV, confirming the transaction is undertaken at arm’s length. The target entity operates in the renewable energy sector, focusing on setting up, generating, and distributing power from renewable power plants in India.
Details regarding the financials and ownership structure are presented below:
| Parameter | Details |
|---|---|
| Target Entity | Mehrauni Electro Power Private Limited (SPV) |
| Industry | Renewable energy |
| Acquisition Stake | 9.77% equity stake (21,00,000 Equity shares) |
| Transaction Consideration | Rs. 2,10,00,000 (Cash consideration) |
For historical context, the company’s turnover details are as follows:
| Financial year | Amount (In crore) |
|---|---|
| 2024-25 | Nil |
| 2023-24 | Nil |
| 2022-23 | NA |
| Note: MEPPL was incorporated in 2023. |
JKCEMENT Stock Price Movement
Shares of JK Cement Limited today slipped by 0.50% to settle at ₹5,433. The stock traded on a noticeable volume of 93,106 shares during the session.Source:
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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.