Transaction Details
Craftsman Automation Limited has entered into three agreements with Solarcraft Power India 24 Private Limited ("Solarcraft"):
- Shareholders' Agreement
- Securities Subscription Agreement
- Power Purchase Agreement
Investment Terms
- Aggregate investment: ₹3,36,00,000 (Rupees Three Crores and Thirty Six Lakhs only)
- Investment form: Subscription of Equity Shares and Compulsorily Convertible Debentures
- Investment structure: One or more tranches
- Purpose: Procurement of solar power under captive consumption provisions of Electricity Act, 2003
Target Company Details (Solarcraft Power India 24 Private Limited)
- Business: Developing solar power project in Rajasthan, engaged in development and generation of renewable/solar power
- Authorised Share Capital: ₹60,00,00,000
- Paid-up Share Capital: ₹10,00,000
- Turnover history: FY 2024: Nil, FY 2025: Nil, FY 2026: Nil
Transaction Specifics
- Related party status: Not a related party transaction. No promoters, promoter group or group companies of Craftsman have any interest in Solarcraft.
- Industry classification: Renewable Energy / Solar Power Generation
- Ownership percentage: 26% (along with other captive users)
- Control: Transaction does not result in acquisition of control over Solarcraft
- Consideration type: Cash consideration
- Completion timeline: Subject to customary conditions precedents, expected within 270 days
- Power procurement: 7.0 MWAC solar power from the proposed captive solar power project
Regulatory Approvals
No governmental or regulatory approvals required for the acquisition (Not Applicable).
Purpose and Impact
The investment is being made to comply with captive generating plant requirements under Electricity Act, 2003 and to facilitate procurement of renewable solar power for the Company's manufacturing operations.
Financial Impact
Cash outflow of ₹3,36,00,000 for investment in securities of Solarcraft (Equity Share Capital and Compulsory Convertible Debentures).