UltraTech Cement and India Cements Acquire Stakes in Renewable Energy Firm FPEL SERVICES LIMITED
UltraTech Cement Limited and its subsidiary, The India Cements Limited, have entered into agreements to acquire significant equity stakes in FPEL SERVICES PRIVATE LIMITED, a company focused on generation and transmission of renewable energy. These acquisitions are aimed at meeting the companies' green energy needs, optimizing energy costs, and ensuring compliance with regulatory requirements for captive power consumption under electricity laws.UltraTech Cement Limited has acquired 13.99% of equity in FPEL SERVICES PRIVATE LIMITED through an Energy Supply Agreement and Share Subscription and Shareholders Agreement. The investment by UltraTech Cement Limited amounts to Rs.12,08,90,000/-. This move supports the company's commitment to sustainable operations and energy optimization.
Complementing this acquisition, The India Cements Limited has also entered into a similar agreement to acquire 12.48% equity shares of FPEL SERVICES PRIVATE LIMITED. The investment made by The India Cements Limited totals Rs.10,78,00,000/-.
FPEL SERVICES PRIVATE LIMITED is an entity specializing in the generation and transmission of renewable energy, specifically focusing on wind power. Incorporated on December 14, 2022, the company operates as a special purpose vehicle (SPV). Its mandate is to supply 15.70 MW AC wind power to plants of the parent companies in Tamil Nadu on a captive basis from a wind project located in Karur village.
The acquisition timeline indicates that the complete transaction must be finalized within 180 days from the execution date of the Energy Supply Agreement and Share Subscription and Shareholders Agreement. The purchase consideration for this strategic asset is structured as cash consideration.
Key details regarding the target entity and the acquisitions are provided below:
| Detail | FPEL SERVICES PRIVATE LIMITED |
|---|---|
| Industry | Generation and transmission of renewable energy (wind power) |
| Date of Incorporation | December 14, 2022 |
| Registered Office | Plot No. N46, House No 4-9-10 HMT Nagar, Hyderabad, Telangana, India, 500076 |
| Acquired Stake by UltraTech Cement Limited | 13.99% (Investment: Rs.12,08,90,000/-) |
| Acquired Stake by The India Cements Limited | 12.48% (Investment: Rs.10,78,00,000/-) |
| Purpose of Acquisition | To meet green energy needs and comply with regulatory requirements for captive power consumption under electricity laws. |
ULTRACEMCO Stock Price Movement
Shares of UltraTech Cement Limited settled today after shedding ₹51, or 0.47%, closing near the ₹10860 level in post-market trading. The equity recorded a volume of 470,400 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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