Key Quantitative Figures
- Additional power supply: 3.30 MW captive hybrid (wind & solar) power
- Investment amount: Not exceeding ₹3.63 crores by way of Compulsory Convertible Debentures
- Total investment by company in SPV: Up to ₹6.60 crores (original) + ₹3.63 crores (additional) = ₹10.23 crores
- Shareholding percentage: Company 26%, Prozeal Green Power Private Limited 74%
Parties Involved
- Navin Fluorine International Limited (listed entity)
- Pro-Zeal Green Power Eleven Private Limited (SPV)
- Prozeal Green Power Private Limited (investment partner)
Purpose and Rationale
The arrangement will facilitate significant savings on power costs at the company's Surat Unit while progressing the company's sustainability initiatives. The additional 3.30 MW power supply is for captive consumption through guaranteed hybrid power generation.
Additional Details from Annexure A
| Particular | Detail |
| Target Entity | Pro-Zeal Green Power Eleven Private Limited (SPV) |
| SPV Business | Generation and transmission of wind and solar power for captive consumption |
| SPV Turnover | Nil |
| Related Party Status | Not a related party transaction; no promoter/promoter group/group company interest |
| Government Approvals | None required |
| Consideration Type | Cash consideration |
| Completion Timeline | 11 months from execution of agreements |
Financial Impact
The investment of up to ₹3.63 crores will be made through Compulsory Convertible Debentures in one or more tranches. The company expects significant savings on power costs, though the exact quantum of savings is not quantified in the disclosure.
Capital Structure Impact
The investment will result in the company holding 26% of the SPV through Compulsory Convertible Debentures, which are expected to convert into equity shares.