JK Lakshmi Cement Ltd. (JKLC) has announced its decision to acquire a 26% equity stake in STLC RE Ltd., marking a strategic move towards sustainable energy adoption. The acquisition, valued at ₹3.50 crore, aligns with the company’s commitment to green energy solutions and cost-efficient power sourcing.
STLC RE Ltd., incorporated on December 30, 2024, is engaged in solar power generation. JK Lakshmi Cement has selected STLC to develop a 9MW Solar Power Project under the Captive Power Route. This initiative is expected to provide cost-competitive solar energy to JKLC for the next 25 years.
The total capital expenditure of ₹40 crore for the project will be financed by STLC, with JKLC’s investment limited to its 26% equity stake, in compliance with Captive Power Rules.
The acquisition qualifies as a related party transaction since Sago Trading Limited, a member of JKLC’s promoter group, holds a 100% stake in STLC. However, the company clarified that the transaction is being conducted at arm’s length, with approval from its Audit Committee.
With this acquisition, STLC RE Ltd. will become an associate company of JK Lakshmi Cement. The acquisition process is expected to be completed on or before June 30, 2025.
JK Lakshmi Cement continues to expand its footprint in the renewable energy sector, reinforcing its commitment to sustainability and cost-effective power solutions for long-term operational efficiency.
