Prakash Pipes Acquires 26% Stake in BECIS Solar 3 for Solar Project
Filing Summary
Prakash Pipes Limited has announced the acquisition of a 26% equity stake in BECIS Solar 3 Private Limited. This acquisition is in compliance with the Electricity Rules, 2005, enabling Prakash Pipes to source solar power for its manufacturing unit in Kashipur, Uttarakhand. The acquisition involves a cash consideration of Rs. 1.21 Crores and is expected to be completed within 120 days. Additionally, Prakash Pipes approved an inter-corporate loan of Rs. 75 Crores to Prakash Industries Limited for general corporate purposes and working capital requirements.
Prakash Pipes Limited has disclosed the acquisition of a 26% equity stake in BECIS Solar 3 Private Limited. This decision was approved by the Board of Directors during a meeting held on 18th December 2025. The acquisition aligns with the requirements under the Electricity Rules, 2005, facilitating the development of a 3.6 MW solar power project. The company also announced an interim dividend payment of 10% per equity share of Rs. 10 each, with the record date set for 24th December 2025.
The financial terms of the acquisition involve a cash consideration of Rs. 1.21 Crores. Prakash Pipes will acquire the shares at this cost, ensuring compliance with regulatory requirements for captive power generation. Additionally, the company has sanctioned an inter-corporate loan of Rs. 75 Crores to Prakash Industries Limited, a promoter group entity, to support its general corporate purposes and working capital needs. The loan carries an interest rate of 12% per annum and is unsecured.
The operational scope of the acquisition includes the development and construction of a 3.6 MW solar power project by BECIS Solar 3 Private Limited. This project is intended to supply power to Prakash Pipes’ manufacturing unit in Kashipur, Uttarakhand, under a long-term power purchase agreement. The acquisition allows Prakash Pipes to source solar power at a preferential tariff, thereby reducing energy costs and promoting the use of renewable energy.
The timeline for the acquisition completion is set within 120 days from the execution of the share subscription and agreement. This timeline ensures that the company meets its regulatory obligations and begins benefiting from the solar power project within the stipulated period.
The parties involved in this transaction include Prakash Pipes Limited as the acquirer and BECIS Solar 3 Private Limited as the target entity. BECIS Solar 3 was incorporated on 5th May 2025 and is a Special Purpose Vehicle (SPV) established by BE Onsite Solar Energy Private Limited. The SPV is tasked with setting up the solar power project as a captive generating station under the Electricity Act and Rules.
The acquisition does not fall under related party transactions, and the promoter group of Prakash Pipes has no interest in BECIS Solar 3. This strategic move is part of Prakash Pipes’ efforts to enhance its energy sourcing capabilities and reduce operational costs through sustainable energy solutions.
Prakash Pipes Limited is engaged in the manufacturing of PVC pipes and fittings. The company focuses on expanding its product offerings and enhancing operational efficiencies. By investing in renewable energy projects, Prakash Pipes aims to align its operations with sustainable practices and reduce its carbon footprint.