Concord Biotech invests ₹6.3 crore in FSGE for hybrid power
Concord Biotech Limited is investing ₹6.3 crore to acquire a 27.38% stake in FSGE Renewable Power Private Limited, establishing a 6.3 MW wind and solar hybrid power project for its Limbasi Facility in Gujarat. The cash transaction, classified as a related party transaction, is aimed at reducing energy costs and carbon footprint. FSGE, incorporated in August 2023, is yet to commence operations and will become an associate company post-acquisition.
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Concord Biotech has agreed to acquire a 27.38% equity stake in FSGE Renewable Power Private Limited for ₹6.3 crore to develop a wind-solar hybrid power project. The investment aims to supply renewable energy to the company's Limbasi Facility in Gujarat, featuring a wind capacity of approximately 6.3 MW AC and a solar capacity of approximately 6.3 MWp DC. This transition to renewable energy is intended to reduce the company's carbon footprint and lower long-term energy costs, reinforcing its commitment to environmental responsibility and operational efficiency.
The acquisition will be made through a cash consideration of ₹6.3 crore, to be paid in one or more tranches. Following the acquisition, FSGE will become an associate of Concord Biotech Limited, categorizing the investment as a Related Party Transaction. The company confirmed that the transaction will be conducted at arm's length, and none of the promoter, promoter group, or group companies hold any interest in the target entity.
FSGE Renewable Power Private Limited was incorporated on August 19, 2023, as a Special Purpose Vehicle for captive power generation through renewable energy. The entity has not yet commenced commercial operations. Its authorized and paid-up share capital stands at ₹1,00,000, divided into 10,000 equity shares of ₹10 each as on June 15, 2026.
Transaction Details
| Particulars | Details |
|---|---|
| Target Entity | FSGE Renewable Power Private Limited |
| Stake Acquired | 27.38% equity share capital |
| Cost of Acquisition | ₹6.3 Crores |
| Consideration Type | Cash |
| Project Location | Gujarat |
| Wind Capacity | Approximately 6.3 MW AC |
| Solar Capacity | Approximately 6.3 MWp DC |
| Allotment Timeline | Within 60 days from the agreement date |
The requisite details regarding the acquisition have been submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The equity shares against the current investment are expected to be allotted within 60 days from the date of the agreement.
Historical Stock Returns for Concord Biotech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.40% | -2.10% | +16.88% | -2.14% | -34.54% | +39.49% |
What is the expected timeline for the wind-solar hybrid project to commence commercial operations and begin supplying power to the Limbasi Facility?
How will this investment impact Concord Biotech's operating margins and energy costs over the next 3 to 5 years?
Does Concord Biotech plan to increase its stake in FSGE Renewable Power in the future to secure majority control?
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