Navin Fluorine Secures Captive Renewable Power and Commits Investment in Expansion Projects
Navin Fluorine International Limited has entered into significant Amendment Agreements designed to secure captive power generation and enhance its sustainability initiatives. The agreements involve Pro-Zeal Green Power Eleven Private Limited (SPV), facilitating both increased renewable energy supply and a strategic investment by the company.The first agreement is a Power Supply and Offtake Amendment Agreement with Pro-Zeal Green Power Eleven Private Limited (SPV). This amendment extends the existing arrangement, which originally covered 6.60 MW of captive hybrid wind and solar power at the Company's Surat Unit. The expanded scope now includes an additional supply of 3.30 MW of captive hybrid wind and solar power from the SPV.
The second agreement is an Investment and Shareholders’ Amendment Agreement involving Prozeal Green Power Private Limited (PGPPL) and the SPV. Under this agreement, Navin Fluorine will make an investment not exceeding ₹3.63 crores through Compulsory Convertible Debentures in the SPV. This capital infusion represents 26% of the shares in the SPV, with the remaining 74% being invested by PGPPL. This investment is additional to the original commitment by Navin Fluorine of up to ₹6.60 crores under the initial Investment and Shareholders' Agreement.
The strategic arrangement is set to facilitate substantial savings on power costs for Navin Fluorine while advancing its sustainability commitments.
Strategic Partnership Details
The SPV, Pro-Zeal Green Power Eleven Private Limited, was formed specifically for setting up an additional 3.30 MW captive hybrid wind and solar power generation plant in Gujarat. The transaction is confirmed not to be a related party transaction, with neither the promoter nor any group companies having an interest in the SPV.Key details regarding the SPV and the agreements include:
| Detail | Description |
|---|---|
| Target Entity | Pro-Zeal Green Power Eleven Private Limited (SPV) |
| Business Focus | Generation and transmission of captive wind and solar power in Gujarat |
| Company Investment | Not exceeding ₹3.63 crores via Compulsory Convertible Debentures |
| Shareholding Structure | 26% by Navin Fluorine; 74% by Prozeal Green Power Private Limited (PGPPL) |
| Operational Impact | Guaranteed captive power generation through hybrid wind and solar supply to the Surat Unit, leading to significant power cost savings. |
The Indicative time period for the completion of this acquisition has been set at 11 months from the execution of the agreements. The SPV was incorporated on May 26, 2025, in India.
NAVINFLUOR Stock Price Movement
On Monday, shares of Navin Fluorine International Limited rallied to close at ₹7711 after gaining 2.86%. The stock saw robust trading activity, with a total volume recorded of 145,527 shares.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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