Samvardhana Motherson Acquires Onega Solar for INR 13 Million

Samvardhana Motherson International Limited, through its wholly owned subsidiary Motherson New Energy Limited, has approved the acquisition of Onega Solar Power Limited. This acquisition involves the purchase of equity shares and compulsorily convertible debentures, constituting 100% ownership of Onega Solar Power Limited, a special purpose vehicle established for the development of a 15 MWp Group Captive Solar Project in Uttar Pradesh.

The financial terms of the acquisition include a cash consideration of INR 13 million. Samvardhana Motherson International Limited, via Motherson New Energy Limited, will acquire the entire stake in Onega Solar Power Limited from IB Energy PTE Ltd, Singapore. The transaction involves the purchase of both share capital and existing compulsorily convertible debentures.

The operational scope of the project involves the development, ownership, and operation of the 15 MWp solar power project. Motherson New Energy Limited will manage the project under an Engineering Procurement & Commissioning and Operations & Management Contract. The project is designed to supply renewable energy to the Motherson group under long-term Power Transfer Agreements, adhering to Electricity Laws. Captive consumers will collectively hold 30% of the equity share capital on a fully diluted basis, entering into agreements for solar power transfer.

Onega Solar Power Limited, incorporated on August 5, 2021, has not yet commenced commercial operations. The entity is focused on renewable energy, specifically solar power. The acquisition aligns with Samvardhana Motherson International Limited’s sustainability goals, aiming to reduce carbon footprint and achieve cost efficiencies in domestic operations.

The acquisition is expected to be completed in the third quarter of the fiscal year 2026. The transaction is structured to comply with regulatory requirements governing captive power plants. Captive consumers, including the company, its subsidiaries, joint ventures, and promoter entities, will hold a 30% equity share in Onega Solar Power Limited, with the promoter entities acquiring up to 4.30% of the equity share capital.

Samvardhana Motherson International Limited is a global leader in automotive components manufacturing. The company focuses on expanding its capabilities in renewable energy and sustainability initiatives. Through strategic acquisitions and investments, Samvardhana Motherson International Limited aims to enhance its operational efficiency and environmental responsibility.