Varroc Engineering Secures Captive Solar Power through Strategic Investments in SPVs
Varroc Engineering Limited has entered into a Power Delivery Agreement and a Share Purchase and Shareholder's Agreement with two Special Purpose Vehicles (SPVs) to secure captive solar power for its manufacturing plants located in Tamil Nadu and Karnataka.The investments are being made in partnership with AMPIN C&I Power Twelve Private Limited and AMPIN Energy C&I One Private Limited, providing the company with a means to source clean energy within these states.
Varroc is acquiring an equity stake in both SPVs, which are dedicated to developing, building, and managing renewable power assets. These projects will enable Varroc Engineering Limited to utilize captive solar power as a captive user.
Key details regarding the investments and the associated SPVs are summarized below:
| State | Target Entity Name | Investment Type | Max Consideration Amount | Shares Acquired | Share Value/Price |
|---|---|---|---|---|---|
| Tamil Nadu | AMPIN Energy C&I One Private Limited | Equity Purchase | Not exceeding Rs. 22,80,000/- | 2,28,000 | Shares of Rs. 10/- each (0.44%) |
| Karnataka | AMPIN C&I Power Twelve Private Limited | Equity Purchase | Not exceeding Rs. 25,90,000/- | 2,59,000 | Shares of Rs. 10/- each (0.83%) |
The two SPVs were incorporated on December 8, 2023, and April 23, 2025, respectively. These entities are focused on the generation and transmission of solar power. The acquisition of equity shares by Varroc Engineering Limited will not exceed the specified amounts and represents a commitment through cash consideration.
The projects aim to establish Renewable Power Plants in Tamil Nadu and Karnataka, each having a captive capacity of 0.40MW AC /0.60 MW DC and 0.50MW AC /0.70MW DC respectively under the Captive Power Scheme.
Varroc Engineering Limited anticipates the completion of these acquisitions on or before August 30, 2026. The transactions are not considered related party dealings, and the SPVs were established solely for the purpose of developing renewable power assets.
VARROC Stock Price Movement
As of 3:01 PM, shares of Varroc Engineering Limited are shedding value by 2.79%, currently trading at ₹633.00 in the live market session. The stock has experienced significant activity, with 149,652 shares traded as the equity hovers near its day low of ₹632.80.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.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.