Gujarat Alkalies & Chemicals (GACL) has made a strategic move into the renewable energy sector by executing a Share Purchase Agreement with Clean Max Enviro Energy Solutions Limited. This agreement paves the way for the development of a 75.9 MW Renewable Hybrid Power Project, marking GACL's commitment to sustainable energy solutions.

Key Details of the Agreement

• Project Scope: 75.9 MW Renewable Hybrid Power Project
• GACL's Stake: 26% shareholding in Clean Max Sphere Energy Private Limited (SPV)
• Investment Ratio: GACL (26%) : Clean Max (74%)
• Power Usage: 100% captive consumption by GACL

Special Purpose Vehicle (SPV) Information

Acquisition Details

• Nature of Acquisition: Cash consideration at face value
• Regulatory Approvals: Not applicable
• Expected Completion: Shortly

Strategic Implications

This move by GACL aligns with the growing trend of industrial companies investing in renewable energy for captive consumption. By acquiring a stake in the SPV, GACL ensures a dedicated source of green energy for its operations, potentially reducing its carbon footprint and energy costs in the long run.

The partnership with Clean Max, a recognized player in the renewable energy sector, suggests that GACL is leveraging expertise to navigate this new venture effectively. This strategic investment could position GACL favorably in terms of sustainability metrics, an increasingly important factor for investors and stakeholders.

Future Developments

GACL has indicated that it will execute additional agreements, including a Shareholders' Agreement and Power Consumption Agreement(s), as necessary for the project's implementation. These forthcoming steps will be crucial in defining the operational and governance aspects of this renewable energy initiative.

As the project develops, it will be interesting to observe how this venture impacts GACL's operational efficiency and environmental performance. The success of this project could potentially set a precedent for similar initiatives in the Indian chemical industry, promoting a shift towards more sustainable energy practices.

Gujarat Alkalies & Chemicals Limited (GACL) has successfully prepaid its outstanding External Commercial Borrowing (ECB) loan of $34.35 million from State Bank of India (SBI), the company announced in a recent disclosure to the stock exchanges. This strategic financial move involves securing a rupee term loan from HDFC Bank Limited to replace the dollar-denominated debt.

Loan Repayment Details

GACL confirmed that it has received a No Dues Certificate from SBI on September 18, 2025, marking the full repayment of the ECB facility. The original ECB agreement, entered into on February 24, 2021, was for a total of $70.00 million, with SBI acting through its London Branch. The prepayment of $34.35 million represents the balance outstanding amount from the original borrowing facility.

Strategic Financial Management

This financial maneuver by GACL demonstrates the company's proactive approach to managing its debt portfolio. By replacing the dollar-denominated ECB with a rupee term loan, the company may be aiming to mitigate foreign exchange risks and potentially benefit from more favorable interest rates in the domestic market.

Disclosure Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, GACL has provided detailed information about the transaction to the stock exchanges. The company's disclosure includes specifics about the parties involved, the purpose of the agreement, and confirmation that the transaction does not fall under related party transactions.

Impact on Financial Structure

While the exact terms of the new rupee term loan from HDFC Bank Limited have not been disclosed, this refinancing move is likely to impact GACL's debt structure and potentially its financial ratios. Investors and analysts may want to keep an eye on how this change affects the company's balance sheet and future financial statements.

Gujarat Alkalies and Chemicals Limited, promoted by the Government of Gujarat, continues to demonstrate its commitment to transparent financial practices and strategic debt management. This prepayment of the ECB loan marks a significant financial event for the company in the current fiscal year.