Indoco Remedies to acquire 26% stake in Kanakal Wind Energy; stock adds ~1%

17 Aug 2022 , 09:16 AM

Indoco Remedies Limited informed that in order to comply with the regulatory requirements for being a ‘captive user’ under Indian Electricity laws, the company has entered into Share Purchase and Shareholder’s Agreement along with the Power Purchase Agreement.

The agreements are for the acquisition of a 26% stake in Kanakal Wind Energy Private Limited, for setting up Solar Power Plant at Akkalkot, Solapur District, Maharashtra.

Under this agreement, the company plans to establish the Solar Power Plant at Akkalkot, Solapur District in the state of Maharashtra. As per the captive rules, the power generated will be supplied exclusively to Indoco Remedies Limited.

The consideration for the acquisition of a 26% stake in Kanakal has been fixed at Rs86.40 lakh.

Indoco will purchase 8,64,000 equity shares of the face value of Rs10 constituting to be 26% of the paid-up equity share capital of Kanakal Wind.

Kanakal is a Special Purpose Vehicle created under the captive scheme which is engaged in the business of developing, building, and managing solar power assets.

At around 9.20 AM, Indoco Remedies was trading at Rs363.25 up by Rs2.2 or 0.61% from its previous closing of Rs361.05 on the BSE.