Mahindra & Mahindra (M&M) said it will acquire 1.60 crore shares (up to 31.2% stake) in ReNew Sunlight Energy (RSEPL), in one or more tranches, for a cash consideration of Rs 16.07 crore.
RSEPL is subsidiary of ReNew Green Energy Solutions, which in turn is a subsidiary of Renew Power.
Pursuant to the above acquisition of shares, RSEPL will become an associate of the company, M&M said in a statement.
RSEPL will build, own and operate captive solar power plant having capacity of 58 MWp to generate around 100 million units a year and feed it into the MSEDCL grid.
Subscription of equity shares in RSEPL will enable M&M to become captive user and consume solar power generated by RSEPL. Accordingly, the company has also signed a power delivery agreement with RSEPL.
Under the open access arrangement of the company with the electricity distribution companies, the manufacturing plants of the company in Maharashtra will consume the said solar power generated.
The company expects to complete the transaction by 31 December 2021.
M&M's business is diversified across farm equipment, auto and automotive components, real estate, hospitality, information technology, defence and aerospace and financial services.
The company reported a net profit of Rs 162.54 crore in Q4 FY21 as against a net loss of Rs 3255.02 crore in Q4 FY20. Net revenue from operations increased by 48.1% year-on-year (YoY) to Rs 13,338.15 crore during the quarter.
The scrip fell 1.13% to currently trade at Rs 772.50 on the BSE.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU