Laxmi Organic Industries to acquire 26% stake in Radiance; Stock ends ~4% higher

15 Feb 2022 , 03:35 PM

Laxmi Organic Industries Limited has signed Share Subscription and Shareholders’ Agreement with Radiance MH Sunrise Seven Private Limited (Radiance) and Radiance Renewables Private Limited, for acquiring 15,12,000 equity shares constituting 26% of the total share capital of Radiance MH Sunrise Seven Private Limited for a sum not exceeding to Rs1,51,20,000.

Radiance is promoted as a special purpose vehicle (SPV) solely to undertake the business of generation of renewable energy from conventional and non-conventional sources of energy and to supply such electricity on the captive basis to the company.

The company proposes to make investment for a sum not exceeding Rs1,51,20,000 by acquiring 15,12,000 equity shares constituting 26% of the total share capital of Radiance.

Laxmi Organic Industries Ltd. stock trade on Tuesday ended at Rs438.50 per share up Rs16.45 or 3.90% on the BSE.

“The Company has entered into a Power Purchase Agreement with Radiance, who is in the business of owning, operating and maintenance of the captive power generating plant and supply of electricity.

In line with the statutory requirements to avail such power / electricity for captive usage, the company is required to become a shareholder of Radiance by acquiring its 26% of the total share capital,” company said in a filing on Monday.

The indicative time period for completion of the acquisition is March 11, 2022.