GRP Ltd Acquires 26.43% Stake in BECIS for Solar Power Procurement
Filing Summary
GRP Ltd has entered into a Power Purchase Agreement with BECIS Solar 5 Private Limited for the procurement of solar power. The company will acquire a 26.43% equity stake in BECIS, which is setting up an 8 MW solar power project in Gujarat. The acquisition involves a cash consideration of Rs. 2.64 crores. This strategic move complies with the Electricity Rules, 2005, requiring GRP Ltd to own a 26% stake as a captive user. The investment is expected to be completed within 120 days of the agreement execution.
GRP Ltd has announced its investment in BECIS Solar 5 Private Limited through a Power Purchase Agreement. The agreement involves BECIS supplying solar power to GRP Ltd as a captive user. Additionally, GRP Ltd has entered into a Share Subscription and Shareholders’ Agreement with BECIS and BE-Onsite Solar Energy Private Limited, the promoter of BECIS, to acquire 26.43% of BECIS’s equity share capital.
The financial terms of the acquisition specify a cash consideration of Rs. 2.64 crores. GRP Ltd will subscribe to the equity shares of BECIS, which has an authorized share capital of Rs. 10.46 crores, divided into 10,46,00,000 equity shares of Rs. 1 each. The issued and paid-up share capital currently stands at Rs. 10 lakhs, divided into 10,00,000 equity shares of Rs. 1 each.
The operational scope includes BECIS setting up an 8 MW solar power project in the distribution area of Dakshin Gujarat Vij Company Limited. This project will function as a captive generating station, supplying power to GRP Ltd on a long-term basis. The investment aligns with the Electricity Rules, 2005, which mandate a 26% ownership for captive users. This arrangement allows GRP Ltd to procure solar power at a preferential tariff, reducing energy costs for its manufacturing units in Gujarat.
The market context for this investment is the growing emphasis on renewable energy sources. The solar power industry in India is expanding, driven by regulatory support and the need for sustainable energy solutions. GRP Ltd’s investment in solar power aligns with these trends, ensuring compliance with regulatory requirements while securing a stable energy supply.
The timeline for completing the investment is within 120 days from the execution of the Power Purchase Agreement and the Share Subscription and Shareholders’ Agreement. This timeframe allows for the necessary processes to be completed for the acquisition of the equity stake in BECIS.
BECIS Solar 5 Private Limited is focused on developing solar power projects. The company was incorporated on 8th July 2025 and is in the process of establishing its first project in Gujarat. As a new entrant in the solar power sector, BECIS aims to contribute to the renewable energy landscape in India.
GRP Ltd is engaged in the manufacturing and supply of rubber products. The company is focused on integrating sustainable practices into its operations. By investing in solar power, GRP Ltd aims to enhance its energy efficiency and reduce its carbon footprint, aligning with its strategic priorities for sustainable growth.