Transaction Details

  • Target Company: Clean Wind Power (Manvi) Pvt Ltd
  • Investment: Subscription of 1,40,000 equity shares
  • Stake Acquired: 26% of the issued and paid-up equity capital
  • Consideration: Cash consideration of ₹2.94 crore (₹210 per share)
  • Agreements Signed: Share Subscription cum Shareholder's Agreement (SSSHA) with Clean Wind Power (Manvi) Pvt Ltd & Hero Rooftop Energy Pvt Ltd, and Power Supply and Consumption Agreement (PSCA) with Clean Wind Power (Manvi) Pvt Ltd
  • Execution Date: 27th May 2026

Purpose and Rationale

The investment is made to secure a long-term power supply of 11.6 million units annually under the Group Captive Structure. This power will be used for operating and maintaining the company's industrial facilities located at Chikkayanachatra, Nanjangud (EHTR-12), Thandavapura (SIPM PPD - HTR -47), and River pump house (NHT-03) as part of its energy requirements.

Related Party Status

The transaction is not a related party transaction. Clean Wind Power (Manvi) Pvt Ltd is a Special Purpose Vehicle (SPV) promoted by Hero Rooftop Energy Pvt Ltd. Neither company is related to the promoter/promoter group/group companies of The South India Paper Mills Limited in any manner.

Target Company Background

  • Industry: Renewable energy power generation
  • Date of Incorporation: 14th July 2014
  • Business: Independent Power Producers
  • Geographic Presence: Karnataka, India
  • Financial Performance:
  • FY 2024 (Audited): Revenue from operations ₹854,476.01 (in '000)
  • FY 2025 (Audited): Revenue from operations ₹789,645.94 (in '000)
  • FY 2026 (Provisional): Revenue from operations ₹609,680.70 (in '000)

Regulatory Approvals and Timeline

  • Government Approvals: Not applicable
  • Acquisition Completion: Within July 2026
  • Power Supply Commencement: Tentatively by 1st August 2026

Financial Impact

The investment amount is ₹2.94 crore for a 26% stake in the renewable energy company, representing the company's proportionate share corresponding to the contracted energy under the Group Captive Scheme.

#Tags: #TheSouthIndiaPaperMills #CleanWindPower #SEBIRegulation30 #RenewableEnergyInvestment #PowerSupplyAgreement