KEI Industries has announced its investment of Rs 5.90 crore in Solarcraft Power India 24 Private Limited to enhance its renewable energy sources. The investment will be made in one or more tranches and involves acquiring 26% of the equity share capital and compulsory convertible debentures (CCD) of the target company.
The investment aligns with KEI Industries‘ commitment to renewable energy as it seeks to source solar power as a captive consumer for a capacity of up to 11.25 MW. The solar power project is located in the state of Rajasthan.
The acquisition is not classified as a related party transaction, and neither the promoter group nor the group companies have any interest in the entity being acquired. The transaction will be completed within 90 days, subject to customary conditions precedent.
Solarcraft Power India 24 Private Limited, incorporated on 6 June 2023, is a special purpose vehicle set up to establish a solar power project on a captive basis in Rajasthan. The company has not reported any turnover in the last three financial years.
The investment by KEI Industries is a cash consideration, and no governmental or regulatory approvals are required for the acquisition.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).