India Cements has announced its acquisition of a 10.76% equity stake in First Energy 8 Private Limited for ₹18.77 crore.
The acquisition involves entering into a Captive Power Agreement and Share Subscription and Shareholders Agreement with First Energy 8, a company specialising in the generation and transmission of renewable energy. This strategic move is aimed at meeting India Cements‘ green energy needs, optimising energy costs, and complying with regulatory requirements for captive power consumption under electricity laws.
First Energy 8, incorporated on 10th August 2023, is a special purpose vehicle (SPV) that will supply 21.835 MW of wind power on a group captive basis from its project located in Mondipatti, Tamil Nadu. The company has reported no turnover for the financial years 2023-24 and 2024-25.
The acquisition is not considered a related party transaction, and neither the promoter group nor group companies of India Cements have any interest in First Energy 8. The transaction is expected to be completed within 180 days from the execution of the agreements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Business Desk and reviewed by Aman Shukla before publication.