Finolex, Hinduja Sign PPA For 8.36 MW Power For 25 Years

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Finolex Industries Limited (FIL) a PVC pipes manufacturing company in India entered into a share purchase agreement for 8.36 MW renewable energy with Mumbai-based Hinduja Renewables (HREPL) and Hinduja Renewables Energy Private Limited (HROPL). This agreement was undertaken between power project developers engaged in the development, construction, operation, and maintenance of renewable energy-based power plants in India. 

Hinduja is a majority shareholder of Hinduja Renewables One Private Limited (HROPL). This shareholders’ agreement was undertaken for the purchase of solar power under the captive power policy of the government. Under the agreement, FIL acquired 15.30% of the paid-up equity of HROPL, which is estimated to be held during the entire power purchase tenure of 25 years. HROPL is operating a 14.3 MW AC solar power plant in Village Manwat, District Parbhani, in the state of Maharashtra. The acquisition does not fall within the ambit of related party transactions.

To enhance the usage of renewable power, FIL claims to acquire 15.30% of the equity share capital of HROPL to procure solar power under the group captive generation mechanism. Under these, FIL shall be able to procure 8.36 MW of green power for 25 years, with 15 years’ lock-in. On completion of the term of the project, FIL may sell the shares at face value only to HROPL or its nominee.

Cost of acquisition and the price at which the shares are acquired – Rs.3.14 crore will be invested for subscribing to the equity share capital of HROPL. A percentage of shareholding/control acquired and/or number of shares acquired – 15.30% of the paid-up equity capital of the HROPL.

The Indicative period for completion of the acquisition is March 2024. The cost of acquisition and/or the price at which the shares are acquired Rs.3.14 crore is to be invested for subscribing to the equity share capital of HROPL. The percentage of shareholding/control acquired and/or number of shares acquired is 15.30% of the paid-up equity capital of the HROPL.