Shares of Isgec Heavy Engineering Ltd gained 3.72% to ₹914.95 in early trade on Tuesday after the company announced a strategic entry into the renewable energy sector. The engineering and capital goods major has signed an agreement to acquire a 26% stake in FPEL HR1 Energy Private Limited, marking a move to strengthen its green energy portfolio.
According to the company’s filing, the investment of up to ₹2.24 crore will help meet its renewable energy requirements and optimize operational energy costs. The solar project, located in Sirsa district, Haryana, will have a capacity of 50 MWp DC / 75 MW AC and will operate under the captive model.
FPEL HR1 Energy Private Limited is developing the project at Ramanagar Village, Odhan, Mandi Kalanwali Tehsil, and aims to generate solar power to meet captive consumption needs.
The company has entered into two key agreements — a Solar Power Purchase Agreement and a Share Subscription and Shareholders’ Agreement — defining investment and power purchase terms.
The filing further clarified that the transaction does not fall under related-party transactions, and no promoters or promoter group entities hold any interest in the target company.
This acquisition aligns with Isgec’s broader sustainability strategy, supporting India’s transition toward renewable energy. The move also underscores a growing trend among industrial firms investing in captive solar projects to cut costs and reduce carbon footprint.
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