The India Cements Limited has entered into an Energy Supply Agreement and Share Subscription and Shareholders Agreement to acquire a 12.48% equity stake in FPEL Services Private Limited. The acquisition involves a cash consideration of up to Rs 10.78 crore, and the transaction is expected to be completed within 180 days from the execution of the agreements.
FPEL Services Private Limited was incorporated on December 14, 2022, and has its registered office in Hyderabad, Telangana. FPEL Services is a special purpose vehicle engaged in the generation and transmission of wind power. FPEL Services will supply 14 MW AC wind power to The India Cements' plants in Tamil Nadu on a captive basis from a wind project located at Karur village in Tamil Nadu.
The acquisition is aimed at meeting The India Cements' green energy requirements, optimising energy costs, and ensuring compliance with captive power consumption regulations under electricity laws. The proposed transaction is not a related party transaction. The promoter, promoter group, and group companies have no interest in the acquisition.
FPEL Services has reported nil turnover for each of the last three financial years since its incorporation. The India Cements disclosed the development to BSE and NSE under Regulation 30 of the SEBI Listing Regulations and also submitted a copy of the disclosure to the Luxembourg Stock Exchange.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.