India Cements to acquire 12.48% stake in FPEL Services for ₹10.78 crore
India Cements is investing up to ₹10.78 crore to acquire a 12.48% stake in FPEL Services Private Limited, securing 14 MW of captive wind power for its Tamil Nadu operations. The deal, structured as a cash transaction, is expected to close within 180 days and is not a related party transaction.
*this image is generated using AI for illustrative purposes only.
india cements has agreed to acquire a 12.48% equity stake in FPEL Services Private Limited for an investment of up to ₹10.78 crore. The acquisition is aimed at securing a dedicated renewable energy supply to optimise power costs and meet regulatory requirements for captive consumption. The company entered into an Energy Supply Agreement and a Share Subscription and Shareholders Agreement to facilitate the transaction, which was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 on June 10, 2026.
FPEL Services Private Limited is a special purpose vehicle engaged in the generation and transmission of renewable energy, specifically wind power. The entity will supply 14 MW AC of wind power on a captive basis to India Cements' plants located in Tamil Nadu. The power will be sourced from a wind project situated at Karur village in the state of Tamil Nadu. The target entity was incorporated on December 14, 2022, and has reported nil turnover over the last three years.
The transaction is structured as a cash consideration and does not qualify as a related party transaction. The company confirmed that its promoters, promoter group, or other group companies hold no interest in the entity being acquired. The acquisition is intended to help the company comply with electricity laws regarding captive power consumption while supporting its green energy objectives.
The completion of the acquisition is anticipated within 180 days from the execution of the agreements. No specific governmental or regulatory approvals were listed as prerequisites for the deal in the filing. The registered office of FPEL Services Private Limited is located at Plot No N46, House No 4-9-10 HMT Nagar, Hyderabad, Telangana.
Key Details of the Acquisition
| Particulars | Details |
|---|---|
| Target Entity | FPEL Services Private Limited |
| Stake Acquired | 12.48% |
| Cost of Acquisition | Up to ₹10.78 crore |
| Nature of Consideration | Cash |
| Purpose | Green energy needs, cost optimisation, regulatory compliance |
| Power Supply Capacity | 14 MW AC |
| Source Location | Karur village, Tamil Nadu |
| Time for Completion | Within 180 days |
Historical Stock Returns for India Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.20% | +3.31% | -1.19% | -6.10% | +15.72% | +112.83% |
How will this captive wind power procurement impact India Cements' overall energy costs and operating margins in the next fiscal year?
Does India Cements plan to pursue similar acquisitions or investments to expand its renewable energy portfolio for other manufacturing plants?
What are the potential risks associated with relying on a newly incorporated SPV with nil historical turnover for critical power supply?
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