SPR Auto Technologies Invests Up To ₹ 6 Crore in Solar Project, Securing Power Purchase Agreement
SPR Auto Technologies Limited (formerly Shriram Pistons & Rings Limited) has entered into a strategic investment to secure captive green energy for its manufacturing facility. The company announced that it has entered into a Share Subscription Agreement (SSA) and a Shareholders' Agreement (SHA) with Sunsure Solarpark Forty Private Limited (Sunsure Solarpark) and Sunsure Energy Private Limited (Sunsure Energy).The investment amounts to up to ₹ 6,00,00,000, which grants SPR Auto Technologies approximately 23.21% of the paid-up equity share capital of Sunsure Solarpark, calculated on a fully diluted basis. This investment is aimed at establishing a group captive solar power project in line with the requirements of the Electricity Act, 2003.
Simultaneously, the Company executed a Power Purchase Agreement (PPA) with Sunsure Solarpark, dated August 25, 2026. This PPA is for the procurement of solar power from the project for use at the Company's manufacturing facility in Pathredi, Rajasthan.
The target entity, Sunsure Solarpark, is a wholly owned subsidiary of Sunsure Energy Private Limited. It operates in the renewable energy and power generation industry. As of the execution date, Sunsure Solarpark has paid-up share capital of ₹ 1,00,000, divided into 10,000 equity shares of ₹ 10 each.
The acquisition is not a related-party transaction, and the promoters of SPR Auto Technologies have no interest in the proposed acquisition. The primary objectives of the acquisition are to meet green energy needs, optimize energy costs, and ensure compliance with regulatory requirements for captive power consumption under electricity laws.
Investment and Timeline Details
The aggregate equity subscription amount stands at ₹ 6.00 crore and is structured as a cash consideration, payable in two tranches based on the fair market value of the equity shares.The payment schedule and details are as follows:
| Particulars | First Tranche | Second Tranche |
|---|---|---|
| Investment Amount | ₹ 90,00,000 | ₹ 5,10,00,000 |
| Timeline | Proposed to be invested on or before September 24, 2026 | Upon receipt of the Second Tranche Subscription Notice from Sunsure Solarpark |
Sunsure Solarpark, a special-purpose vehicle incorporated in India for the solar power project, was incorporated on January 8, 2025. Since incorporation, the entity has reported no turnover as commercial operations have not commenced.
SHRIPISTON Stock Price Movement
SPR Auto Technologies Limited shares shed 2.23% on Tuesday, settling at ₹4629.9 as trading concluded for the session. The stock had previously achieved its 52-week high and saw a volume of 121,225 shares traded during the day.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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