Greenply Industries' board approves acquisition of 3.12% stake in Renew Green Energy; stock slips ~2%

23 Aug 2022 , 01:45 PM

Greenply Industries Limited informed that the board of directors approved Share Subscription and Shareholders Agreement and Power Purchase Agreement with M/s. Renew Green Energy Solutions Private Limited.

Under the agreement, the company will supply hybrid (Solar and Wind) electricity in the Company’s unit at Bamanbore, Gujarat.

The Company plans to invest up to Rs60 lakh in shares of Renew Green (GJ Four) Private Limited, a special purpose vehicle (SPV) launched by Renew Green Energy Solutions Private Limited, for a 3.12% stake in the said SPV.

The board also approved the proposal of Baahu Panels Private Limited, a Wholly Owned Subsidiary (WOS) of the Company, to invest up to Rs5.25 crore in the shares of Renew Green (GJ Four) Private Limited, a special purpose vehicle (SPV) promoted by Renew Green Energy Solutions Private Limited, resulting in a 28.08% shareholding in the said SPV and making it an Associate Company of WOS.

As a result, the Company and the WOS have signed a Share Subscription and Shareholders Agreement as well as a Power Purchase Agreement with Renew Green (GJ Four) Private Limited for a combined 5MW capacity.

The transaction’s goal is to ease the delivery of hybrid (solar and wind) power at WOS’s greenfield MDF manufacturing plant in Gujarat.

Out of the total 5MW capacity, the company has agreed for its consumption at the Bamanbore unit in Gujarat, and 4.5 MW AC Wind – Solar Hybrid capacity is agreed and contracted with Company’s WOS for its consumption at the MDF unit at Sherpura in Gujarat.

At around 1.48 PM, Greenply Industries was trading at Rs178.40 down by Rs2.95 or 1.63% from its previous closing of Rs181.35 on the BSE. The scrip touched intraday high and low of Rs182.70 and Rs177.50 respectively.