Mahanagar Gas has announced its decision to acquire a 26% equity stake in FPEL Reliant Energy Private Limited for a cash consideration of up to ₹389 lakh. This acquisition is aimed at meeting the company’s green energy needs and optimising energy costs, in compliance with regulatory requirements under the Electricity Act 2003 and the Electricity Rules, 2005.
FPEL Reliant Energy operates in the generation and transmission of solar energy and other renewable energy sources. The acquisition will not fall under related party transactions, as Mahanagar Gas and its promoter group currently have no existing interest in FPEL Reliant. However, post-acquisition, FPEL Reliant will become an associate company and consequently a related party.
The acquisition is expected to be completed within six months from the execution date of the Share Subscription Agreement (SSA) and Shareholders’ Agreement (SHA). FPEL Reliant Energy, incorporated on July 5, 2022, operates in India and reported a turnover of ₹4.73 lakh in the financial year 2022-23, with no turnover in the subsequent years.
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.