Privi Speciality Chemicals Invests Rs. 1.77 Crore in Solar Project
Filing Summary
Privi Speciality Chemicals Ltd has announced an investment of Rs. 1,77,57,831 in a solar power project through a Special Purpose Vehicle (SPV), Radiance MH Sunrise Eleven Private Limited. This investment represents 5.80% of the SPV’s equity share capital. The transaction involves the purchase of 47,103 equity shares at Rs. 377 each. The investment aligns with Privi’s strategy to become a captive user under the Electricity Act, 2003, aiming to reduce reliance on coal and natural gas. The acquisition was completed on March 9, 2026, with no initial regulatory approvals required.
Privi Speciality Chemicals Ltd has disclosed an investment in a solar power project by acquiring 5.80% of the equity share capital in Radiance MH Sunrise Eleven Private Limited. This transaction is part of a strategic move to invest in renewable energy through a Special Purpose Vehicle (SPV). The company has entered into a Power Purchase Agreement (PPA) and a Share Subscription and Shareholders Agreement (SSSHA) to facilitate this investment.
The financial terms of the investment include a total cash consideration of Rs. 1,77,57,831. Privi Speciality Chemicals Ltd has subscribed to 47,103 equity shares of the SPV at a price of Rs. 377 per share, which includes a premium of Rs. 367 per share. This investment is part of the company’s broader strategy to hold a 26% equity stake in the SPV, as previously approved by the Board of Directors.
The operational scope of this investment involves the development, construction, and operation of solar power plants. The target entity, Radiance MH Sunrise Eleven Private Limited, is engaged in setting up a ground-mounted, grid-connected solar photovoltaic electric generating facility in Maharashtra with a total installed capacity of 16.60 MW. The project aims to generate power through environmentally friendly resources, reducing the company’s dependence on coal and natural gas.
In terms of regulatory context, no initial governmental or regulatory approvals are required for the acquisition. However, post-commissioning of the solar power project, approvals for long-term open access and the installation of an Availability Based Tariff (ABT) meter will be necessary. The investment was completed in a single tranche, with the subscription amount paid on March 9, 2026.
The target entity, Radiance MH Sunrise Eleven Private Limited, was incorporated under the Companies Act, 2013, on March 12, 2021. It is currently in the process of developing its solar power facility and has not yet commenced operations. The acquisition aligns with Privi Speciality Chemicals Ltd’s objective to become a captive user as defined under the Electricity Act, 2003, and the Electricity Rules, 2005.
Privi Speciality Chemicals Ltd focuses on manufacturing and supplying aroma chemicals. The company is committed to expanding its operations into sustainable and renewable energy sectors, aligning with global trends towards environmental sustainability. This strategic investment in solar power is part of its broader initiative to enhance energy efficiency and reduce operational costs.