Purvah Green Power to Amalgamate RPSG Energy Services in Renewable Sector Consolidation
CESC Limited has announced a Scheme of Amalgamation involving its subsidiary, Purvah Green Power Private Limited, and RPSG Energy Services Limited. The scheme aims to consolidate renewable energy portfolios under a single entity, driven by anticipated operational and commercial synergies between the two companies.The amalgamation involves the transfer of assets and businesses to Purvah Green Power Private Limited (the Transferee Company) from RPSG Energy Services Limited (the Transferor Company).
Business Scope and Synergy
Both entities operate significantly within the renewable energy sector. The Transferee Company, Purvah, is engaged in generating power through renewable energy sources and serves as an EPC contractor for electrical energy projects utilizing various non-conventional energy types such as solar and wind power plants.The Transferor Company, RPSG Energy Services Limited, has a subsidiary, RPSG Solvanta, which operates in the renewable energy domain, specializing in the manufacturing of modules essential for generating power through non-conventional and renewable sources.
The rationale behind the proposed amalgamation is the consolidation of their respective renewable portfolios. This integration is expected to generate crucial operational and commercial synergies, including captive supply of module components, thereby enhancing cost and quality control while mitigating supply chain risks.
Financial Overview and Transaction Details
Details regarding the two companies involved in the transaction are presented below:| Metric | Purvah Green Power Private Limited (Transferee) | RPSG Energy Services Limited (Transferor) |
|---|---|---|
| Total Assets | INR 2,926.37 Crore (As on July 29, 2026) | INR 271.24 Crore (As on July 29, 2026) |
| Net Worth | INR 945.29 Crore (As on July 29, 2026) | INR 271.24 Crore (As on July 29, 2026) |
| Relevant Revenue | INR 1,097.61 Crore (FY 2025-26) | RPSG Solvanta revenue: INR 275.76 Crore (FY 2025-26); Current FY till July 29, 2026: INR 286.15 Crore |
The amalgamation consideration is determined by a share exchange ratio based on valuation services provided by KPMG Valuation Services LLP. For the consolidation of RPSG Energy Services Limited with Purvah Green Power Private Limited, the Transferee Company will issue and allot 491 fully paid up equity shares of face value INR 10 for every 100 equity shares of face value INR 10 held in the Transferor Company.
Both entities are related parties in this transaction. The consideration has been discharged on an "arm's length" basis, with a fairness opinion issued by ICICI Securities Limited, which is an independent Category I SEBI Registered Merchant Banker.
Upon the Scheme becoming effective, there will be no change in the shareholding pattern of CESC Limited. The scheme remains subject to receiving necessary approvals from the jurisdictional bench of the National Company Law Tribunal (NCLT) and the shareholders of Purvah and RPSG Energy.
CESC Stock Price Movement
Today, CESC Limited shares edged higher to settle at ₹165.57 after gaining 0.37%. The stock recorded a total traded volume of 694,292 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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