Mahindra & Mahindra Ltd updates on acquisition of stake in solar power company

Mahindra & Mahindra Ltd had entered into a Share Subscription and Shareholders' Agreement ("SSSHA") with ReNew Sunlight Energy Private Limited ("RSEPL") and ReNew Green Energy Solutions Private Limited for subscribing to 1,60,74,000 Equity Shares of RSEPL, in one or more tranches, which would result in the Company holding upto 31.2% of the Equity Share Capital of RSEPL by 31st December, 2021.

The Company has subscribed to 16,07,400 Equity Shares of RSEPL constituting 31.2% of the Equity Share Capital of RSEPL. Consequently, RSEPL has become an associate of the Company.

Further, in view of extension of project implementation timeline, the subscription of balance 1,44,66,600 Equity Shares of RSEPL by the Company is expected to be completed by 31st March, 2022.

RSEPL will build, own and operate Captive solar power plant having capacity of 58 MWp to generate around 100 million units a year and feed it into the MSEDCL grid. Under the open access arrangement of the Company with the electricity distribution companies, the manufacturing plants of the Company in Maharashtra will consume the said solar power generated.

Shares of Mahindra & Mahindra Limited was last trading in BSE at Rs. 838.70 as compared to the previous close of Rs. 818.30. The total number of shares traded during the day was 63038 in over 1995 trades.

The stock hit an intraday high of Rs. 840.55 and intraday low of 819.45. The net turnover during the day was Rs. 52496078.00.

Source : Equity Bulls

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MahindraandMahindra INE101A01026 Subscription RSEPL