Finolex Industries Ltd enters into SPA for purchase of solar power under captive power policy

Finolex Industries Limited ('FIL') has entered into a Share Purchase Agreement and Shareholders Agreement today i.e. 2nd March, 2024 with Hinduja Renewables One Private Limited ('HROPL') and Hinduja Renewables Energy Private Limited ('HREPL').

HREPL is the majority shareholder of HROPL. The Shareholders' Agreement has been entered for purchase of solar power under the captive power policy of the Government.

FIL will be acquiring 15.30% of the paid up equity of HROPL, which will be held during the entire power purchase tenure of 25 years.

The said project will supply Solar Power to the Company's unit situated at Urse and Ratnagiri, in Maharashtra.

In order to enhance usage of renewable power, FIL will acquire 15.30% of the equity share capital of HROPL to procure solar power under the group captive generation mechanism. Pursuant to these, FIL shall be able to procure 8.36 MW of green power for a period of 25 years, with 15 years' lock-in. On completion of term of project FIL may sale the shares at face value only to HROPL or its nominee.

HROPL is a power project developer and has developed a power project. HROPL is operating 14.3 MW AC solar power plant in Village Manwat, District Parbhani, in the state of Maharashtra.

Shares of Finolex Industries Limited was last trading in BSE at Rs. 223.00 as compared to the previous close of Rs. 218.45. The total number of shares traded during the day was 123570 in over 3085 trades.

The stock hit an intraday high of Rs. 226.80 and intraday low of 218.25. The net turnover during the day was Rs. 27683851.00.

Source : Equity Bulls

Keywords

FinolexIndustries INE183A01024 FINPIPE PlasticProducts SPA StakeAcquisition RenewablePowerSupplier CaptivePower