Phoenix Mills Subsidiary Acquires Stake in Solar Power Project
Filing Summary
The Phoenix Mills Ltd’s wholly owned subsidiary, Classic Mall Development Company Limited, has entered into a Share Subscription and Shareholders’ Agreement with Torrent Green Energy Private Limited and Torrent Urja 22 Private Limited. Classic Mall will subscribe to 70,19,386 Class A Equity Shares of Torrent at a total consideration of Rs. 7,01,93,860. This acquisition aims to secure renewable energy supply from Torrent’s solar power project. The transaction is expected to be completed within 15 days, subject to conditions precedent.
The Phoenix Mills Ltd has announced that its wholly owned subsidiary, Classic Mall Development Company Limited, has entered into a Share Subscription and Shareholders’ Agreement (SSSA) with Torrent Green Energy Private Limited and Torrent Urja 22 Private Limited. This agreement involves Classic Mall subscribing to 70,19,386 Class A Equity Shares of Torrent, each with a face value of Rs. 10. The purpose of this acquisition is to facilitate the purchase of renewable energy generated from Torrent’s captive solar power plant.
The total consideration for the acquisition amounts to Rs. 7,01,93,860. This amount will be paid in cash by Classic Mall for the subscription of the equity shares. The acquisition is structured to comply with the requirements under the Electricity Act 2003 and Electricity Rules 2005, which necessitate a minimum of 26% shareholding to maintain captive status. The transaction does not fall under related party transactions, and there is no interest from the promoter group in Torrent.
Classic Mall has also signed a Power Supply Agreement (PSA) with Torrent, under which Torrent will supply solar power to Classic Mall. This agreement aligns with Classic Mall’s objective to become a Captive User of the solar power generated by Torrent. Torrent is focused on developing and constructing solar power projects as captive generating stations, and this agreement supports Classic Mall’s energy procurement strategy.
Torrent Urja 22 Private Limited, incorporated on August 5, 2024, is an Indian company set up for the development of solar power projects. As of the financial year 2024-25, Torrent does not have any turnover. The acquisition by Classic Mall is aimed at securing a reliable supply of renewable energy, which is in line with the company’s operational goals.
The acquisition is expected to be completed within 15 days of signing the agreement, subject to the fulfillment of all conditions precedent. This timeline ensures a swift transition to utilizing renewable energy sources for Classic Mall’s operations.
Torrent Green Energy Private Limited is involved in the development of renewable energy projects, focusing on solar power generation. The company aims to expand its footprint in the renewable energy sector by establishing captive generating stations.
The Phoenix Mills Ltd is a leading retail-led mixed-use property developer and operator in India. The company focuses on developing and managing retail malls, commercial spaces, and hospitality units. Its strategic initiatives include expanding its portfolio of retail and commercial properties while integrating sustainable energy solutions into its operations.