Biocon Limited to acquire 26% stake in Hinduja Renewables Two Private Limited

Biocon Limited has entered into an agreement on November 21, 2020 for acquisition of 26% equity stake on a fully diluted basis in Hinduja Renewables Two Private Limited ("HRTPL"), a special purpose vehicle formed for the purpose of power generation and developing a captive power plant as per Electricity laws.

The objective of the acquisition is to enhance the renewable based power consumption, Biocon will acquire and maintain 26% stake on a fully diluted basis in HRTPL throughout the term of the Power Purchase Agreement to maintain captive status as per Electricity Act, Share Purchase, Subscription and Share Holders Agreement and other transaction documents.

The cost of acquisition or the price at which the shares are acquired is Rs. 5,91,61,730 (Rupees Five Crore Ninety One Lakh Sixty One Thousand Seven Hundred Thirty only) for acquisition of 26% stake on a fully diluted basis in one or more tranches.

HRTPL was incorporated on September 25, 2020, which will engage in the business of power generation and will develop a 19.77MW wind power plant (captive) at Raichur District of Karnataka. Since the company incorporated recently, it has no turnover as on date.

Shares of BIOCON LTD. was last trading in BSE at Rs.419.35 as compared to the previous close of Rs. 420.1. The total number of shares traded during the day was 605568 in over 5349 trades.

The stock hit an intraday high of Rs. 425.35 and intraday low of 417.6. The net turnover during the day was Rs. 255772661.

Source : Equity Bulls

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