UPL to acquire 26% stake in Clean Max Kratos; stock skids ~2%

16 Sep 2022 , 10:26 AM

UPL Limited informed that it has acquired 26% shareholding in Clean Max Kratos Pvt. Ltd. as per the definitive agreement.

As per the agreement, Clean Max Kratos would build and operate a hybrid 28.05 MW solar and 33.00 MW wind power facility under the captive model allowed by the Electricity Laws. This initiative will allow UPL to expand its renewable energy usage from 8% to 30% of total worldwide power consumption.

As per the company, no governmental or regulatory approvals are required for the investment.

The company is expected to complete the transaction within a period of 30 days.

UPL will initially acquire 2,600 shares of Rs10 each (26% stake of paid-up share capital) in Clean Max Kratos for consideration of Rs26,000, stated the company in its regulatory filing.

UPL would invest an additional Rs39.60 crore in Clean Max Kratos in one or more tranches, keeping its stake at 26% of the paid-up share capital.

At around 10.28 AM, UPL was trading at Rs727.65 per piece, down by 2.05% from its previous closing of Rs742.85 on the BSE. The scrip opened at Rs748.85 and touched intraday high and low of Rs753 and Rs726.25 respectively.

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