JK Cement has announced an investment in Mehrauni Electro Power Private Limited, acquiring 21 lakh equity shares at a face value of Rs 10 each, totalling Rs 2.1 crore. This investment represents a 9.77% stake in the company.
Mehrauni Electro Power, a special purpose vehicle, focuses on renewable energy, specifically setting up, generating, and distributing power from renewable sources in India. The acquisition aligns with JK Cement‘s long-term renewable energy strategy, as outlined in the Power Purchase Agreement and Shareholder Subscription Agreement.
The target entity, Mehrauni Electro Power, reported no turnover for the financial year ending 31 March 2025, with a profit after tax and net worth of negative Rs 0.13 crore. The acquisition does not fall under related party transactions, and the promoter group has no interest in the entity.
Mehrauni Electro Power was incorporated in 2023 and is currently establishing a solar power facility with a capacity of 40 MW AC at Village-Bihariya, Prayagraj-District, Uttar Pradesh. The project operates on a Group Captive model under Electricity Laws, with a Power Purchase Agreement to supply 7 MWp solar power to JK Cement’s Prayagraj plant.
The acquisition is a cash transaction, and no governmental or regulatory approvals were required. The investment is part of JK Cement’s strategic move to bolster its renewable energy portfolio.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).