Phoenix Mills and Offbeat Secure Investment in O2 Renewable Energy XXVIII to Meet Captive Power Requirements
The Phoenix Mills Limited, along with its subsidiary Offbeat Developers Private Limited, has entered into an Amendment to the Security Subscription and Shareholders' Agreement (SSSA) involving O2 Renewable Energy XXVIII Private Limited. This strategic move is aimed at securing captive user status for renewable energy generated by O2 Renewable Energy XXVIII from its dedicated generating plant.The acquisition involves The Phoenix Mills Limited and Offbeat Developers Private Limited subscribing to Equity Shares and Series B Compulsory Convertible Debentures of O2 Renewable Energy XXVIII. The transaction is set to be completed within 30 business days from the execution of the amended SSSA, subject to applicable terms and conditions.
O2 Renewable Energy XXVIII Private Limited, incorporated on July 31, 2024, is an Indian company focused on developing and constructing a solar power project as a captive generating station. JSW Neo Energy Limited serves as the promoter of O2 Renewable Energy XXVIII. The company operates in the Solar Power Generation industry within India.
Transaction Details and Financial Commitment
The total consideration for the subscription stands at Rs. 5,76,90,000/- and will be paid in cash. This investment is structured across both companies to ensure compliance with regulatory requirements under The Electricity Act 2003 and Electricity Rules 2005, which mandate a minimum of 26% shareholding for captive status.The financing breakdown, covering the subscription of securities by The Phoenix Mills Limited and Offbeat Developers Private Limited, is detailed as follows:
| Investor | Investment Type | Shares/Debentures Acquired | Face Value / Share Price | Amount Invested |
|---|---|---|---|---|
| The Phoenix Mills Limited | Equity Shares | 274,332 | Rs. 10/- each | Rs. 27,43,320/- |
| The Phoenix Mills Limited | Series B Debentures | 24,690 | Rs. 1000/- each | Rs. 24,69,000/- |
| Offbeat Developers Private Limited | Equity Shares | 302,568 | Rs. 10/- each | Rs. 30,25,680/- |
| Offbeat Developers Private Limited | Series B Debentures | 27,231 | Rs. 1000/- each | Rs. 27,23,1000/- |
The combined shareholding of The Phoenix Mills Limited and Offbeat Developers Private Limited in O2 Renewable Energy XXVIII will not exceed 45% of the equity share capital on a fully diluted basis. Furthermore, the transaction is confirmed not to constitute a related party transaction, as neither the promoters nor the promoter group of the companies involved have any interest in O2 Renewable Energy XXVIII.
Company Performance Snapshot
Details regarding the market presence and financial health of O2 Renewable Energy XXVIII are provided below:| Particulars | FY-25-26 | FY-24-25 | FY-23-24 |
|---|---|---|---|
| Turnover (Rs. in Thousands) | - | - | NA |
| PAT (Rs. in Thousands) | -2,305.90 | -1,811.97 | NA |
| Net Worth (Rs. in Thousands) | -3,128.87 | -822.97 | NA |
PHOENIXLTD Stock Price Movement
Shares of The Phoenix Mills Limited are slipping in live trading as of 2:14 PM, shedding over ₹106.80 or 5.28% and currently standing at ₹1916.4.The stock has seen significant activity during the session, with a total traded volume reaching 1.82 million shares so far.
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