Grasim Industries Acquires 29% Stake in GMR Kalinga Solar Power
Filing Summary
Grasim Industries Limited has acquired a 29% equity stake in GMR Kalinga Solar Power Limited, a special purpose vehicle (SPV) formed by GMR Energy Limited. The acquisition involves an investment of Rs. 3.60 crore and is intended to secure renewable energy for Grasim’s Ganjam Plant in Odisha. The transaction is structured as a cash consideration and does not require governmental or regulatory approvals. The SPV is focused on developing a 10 MW solar power generation facility. The acquisition is expected to be completed within 30 days from the execution of the relevant agreements.
Grasim Industries Limited has announced the acquisition of a 29% equity stake in GMR Kalinga Solar Power Limited, a special purpose vehicle (SPV) incorporated by GMR Energy Limited. This acquisition is aimed at securing renewable energy for Grasim’s Ganjam Plant located in Odisha. The transaction was executed through a Share Subscription-Cum-Shareholders’ Agreement and a Power Purchase Agreement with the SPV and GMR Energy Limited.
The financial terms of the acquisition involve a cash consideration of Rs. 3.60 crore. This investment will be made in one or more tranches. The acquisition does not constitute a related party transaction, and the promoter or promoter group companies have no interest in the SPV. The transaction is conducted at arm’s length, ensuring compliance with regulatory standards.
The SPV, GMR Kalinga Solar Power Limited, is focused on the generation and transmission of renewable energy. It is specifically tasked with developing a captive solar power generation facility with a capacity of approximately 10 MW. This facility will cater to the green energy needs of Grasim’s Ganjam Plant, optimizing energy costs and ensuring compliance with regulatory requirements for captive power consumption under electricity laws.
No governmental or regulatory approvals are required for this acquisition. The indicative time period for the completion of the acquisition is within 30 days from the execution of the Share Purchase and Shareholders Agreement(s). This timeline ensures a swift transition to renewable energy sources for Grasim’s operations in Odisha.
GMR Energy Limited is engaged in the development of energy projects, focusing on renewable energy solutions. The company aims to expand its portfolio in the renewable energy sector, aligning with global trends towards sustainable energy sources.
Grasim Industries Limited is a flagship company of the Aditya Birla Group, engaged in diverse business sectors including viscose staple fiber, cement, chemicals, and textiles. The company is committed to sustainable practices and enhancing its renewable energy footprint to support its operations and reduce environmental impact.