UltraTech Cement Limited has disclosed an acquisition of equity shares in FPEL SERVICES PRIVATE LIMITED through a regulatory filing under Regulation 30 of SEBI Listing Regulations.
Target Entity Details
- Name: FPEL SERVICES PRIVATE LIMITED
- Business: Generation and transmission of renewable energy (wind power)
- Date of Incorporation: 14th December 2022
- Turnover (last three years): Nil (₹ in crores)
- Country of Operation: India
- Status: Special purpose vehicle (SPV)
Acquisition Details
- Percentage Acquired: 13.99% equity stake
- Investment Amount: ₹12,08,90,000/- (₹12.09 crore)
- Consideration Type: Cash consideration
- Completion Timeline: Within 180 days from execution of agreements
Purpose and Impact
The acquisition is for:
- Meeting the company's green energy needs
- Optimizing energy costs
- Complying with regulatory requirements for captive power consumption under electricity laws
FPEL SERVICES will supply 15.70 MW AC wind power to UltraTech Cement's plants in Tamil Nadu on a captive basis from a wind project located at Karur village, Tamil Nadu.
Related Party Status
The acquisition is not a related party transaction. Promoter/promoter group/group companies have no interest in the proposed acquisition, and it is being done at arm's length.
Subsidiary Involvement
The India Cements Limited, a subsidiary of UltraTech Cement Limited, has also entered into similar agreements to acquire 12.48% equity shares of FPEL SERVICES PRIVATE LIMITED for an investment of ₹10,78,00,000/- (₹10.78 crore).
Regulatory Approvals
No governmental or regulatory approvals are required for this acquisition as indicated in the disclosure.