UltraTech Cement Acquires 26% Stake in Renewable Energy Provider Solaris Horizon for Green Energy Needs
UltraTech Cement Limited has entered into an agreement to acquire a significant stake in Solaris Horizon Energy Private Limited, with the move designed to meet the company's growing green energy requirements and optimize power costs. The acquisition involves securing 26% of the equity shares in the renewable energy firm through an Energy Supply Agreement, Share Subscription, and Shareholders Agreement.Solaris Horizon Energy Private Limited specializes in the generation and transmission of renewable energy, primarily solar power. The targeted company is a subsidiary of Waaree Forever Energies Private Limited. UltraTech Cement's interest in the acquisition is strategic, aimed at satisfying its need for green energy and ensuring compliance with regulatory requirements concerning captive power consumption under electricity laws.
The investment committed by UltraTech Cement in this venture totals up to Rs. 27,75,50,000/- (Rupees Twenty Seven Crore Seventy Five Lakhs Fifty Thousand Only). This capital infusion allows UltraTech Cement to harness renewable energy solutions while maintaining control over its power consumption needs.
Solaris Horizon Energy Private Limited is based in Mumbai and functions as a special purpose vehicle (SPV) for a specific solar project located in Chhattisgarh. The SPV is set to supply 91 MWp DC or 65 MW AC solar power directly to the plants of UltraTech Cement on a captive basis from a solar project located in Village Puran, Tehsil & District Mungeli, Chhattisgarh.
The transaction mandates completion within 180 days following the execution of the respective agreements. The acquisition is structured as a cash consideration.
Key details regarding the acquisition and target entity are summarized below:
| Particular | Details |
|---|---|
| Target Entity Name | Solaris Horizon Energy Private Limited |
| Industry Focus | Generation and transmission of renewable energy (solar power) |
| Acquired Stake | 26% equity shares |
| Investment Cost | Upto Rs. 27,75,50,000/- |
| Strategic Purpose | Meeting green energy needs, optimizing costs, and complying with captive power laws |
| Target Company Background | SPV supplying solar power (91 MWp DC / 65 MW AC) to UltraTech Cement's plants in Chhattisgarh |
ULTRACEMCO Stock Price Movement
UltraTech Cement Limited shares rallied on Wednesday, closing at ₹11,891 after gaining 0.94% in the market. The stock finished trading within its day’s range of ₹11,650 to ₹11,891 on a volume of 328,113 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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