ACME Solar Holdings Limited , a key player in India's renewable energy sector, has made a strategic move to bolster its project pipeline and accelerate its growth in the solar power industry. The company has approved the acquisition of AK Renewable Infra Private Limited, marking a significant step in expanding its renewable energy portfolio.

Acquisition Details

ACME Solar's Operational Committee of the Board of Directors has given the green light to acquire 100% equity shares of AK Renewable Infra Private Limited. The deal, valued at an enterprise value of INR 79.25 crore, is subject to closing conditions and adjustments as per the Share Purchase Agreement (SPA).

Strategic Implications

This acquisition is poised to bring several benefits to ACME Solar:

1. Enhanced Project Pipeline: AK Renewable Infra has secured development rights for a 300 MW capacity project in Rajasthan. This includes land, connectivity, and all necessary approvals.

2. Accelerated Execution: The acquisition is expected to speed up project execution and commissioning, potentially leading to faster revenue generation and improved profitability for ACME Solar.

3. Expanded Presence: By integrating AK Renewable Infra's assets, ACME Solar strengthens its foothold in the renewable energy park development sector.

Transaction Structure

• The deal is structured as a cash consideration.
• Upon completion, AK Renewable Infra will become a wholly-owned subsidiary of ACME Solar.
• The acquisition is expected to be completed within five business days of the SPA execution, or as agreed upon by both parties.

About AK Renewable Infra

• Incorporated on April 14, 2021
• Registered office: Shop No. 304, City Pearl, M.I. Road, Jaipur, Rajasthan
• Primary focus: Development of renewable energy parks in India
• Financial performance: The company reported nil turnover for the past three fiscal years

Regulatory Compliance

ACME Solar has disclosed this acquisition in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this transaction does not fall under the category of related party transactions.

Market Impact

This strategic acquisition underscores ACME Solar's commitment to expanding its renewable energy portfolio and accelerating its growth in the Indian solar power market. By securing rights to a substantial 300 MW capacity in Rajasthan, ACME Solar is positioning itself to capitalize on the growing demand for clean energy solutions in India.

As the renewable energy sector continues to gain momentum, ACME Solar's proactive approach in expanding its project pipeline through this acquisition may well set the stage for enhanced market presence and long-term growth in the competitive solar power industry.

ACME Solar Holdings has received approval to withdraw from a 300 MW solar project without facing any penalties, marking a significant development in the company's project portfolio.

Project Background

The solar project in question was awarded to ACME Solar on February 6, 2024, under the Flexibility Scheme, with a proposed tariff of INR 2.53 per kWh. The project was to be developed through ACME Sigma Urja Private Limited, a special purpose vehicle (SPV) of the company.

Flexibility Scheme and Recent Developments

The Flexibility Scheme, introduced on April 12, 2022, aimed to provide flexibility in the generation and scheduling of thermal and hydro power stations by bundling them with renewable and storage energy. However, recent developments have led to changes in the scheme's implementation:

1. On January 21, 2025, the Ministry of Power issued an order making participation in the Flexibility Scheme voluntary.
2. A writ petition challenging provisions of the scheme was filed by West Bengal State Electricity Distribution Company Limited (WBSEDCL) in the Delhi High Court, which remains sub judice.

Exit Approval and Implications

On September 1, 2025, ACME Solar received confirmation from PFC Consulting Limited (PFCCL), the bid coordinator, that successful bidders could exit from their Letter of Award (LoA) without any penalties. This decision allows ACME Solar to:

• Withdraw from the 300 MW solar project
• Collect their Earnest Money Deposit (EMD)

Financial Impact

According to the company's disclosure, the project is currently not generating any revenue or profitability. As a result, ACME Solar stated that there would be no material impact on its current financial performance or profitability due to this exit.

Company Statement

Rajesh Sodhi, Company Secretary and Compliance Officer of ACME Solar Holdings Limited, confirmed the development in a regulatory filing dated September 2, 2025. The company has duly informed the stock exchanges about this update in compliance with SEBI regulations.

This strategic move allows ACME Solar to reallocate its resources and focus on other projects in its portfolio, potentially optimizing its operations in the evolving renewable energy landscape.