Chalet Hotels Limited has announced the acquisition of a 26% shareholding in Pro-Zeal Green Power SPV, a special purpose vehicle dedicated to solar power project development. The investment is specifically allocated for a solar power project situated in Maharashtra, marking a significant diversification move for the hospitality company.

Strategic Investment Details

The acquisition represents Chalet Hotels' entry into the renewable energy sector through its partnership with Pro-Zeal Green Power SPV. The special purpose vehicle structure is commonly used for infrastructure and energy projects, providing a focused approach to project development and management.

Renewable Energy Expansion

This investment aligns with the growing trend of companies diversifying into sustainable energy solutions. The Maharashtra-based solar power project will contribute to the state's renewable energy capacity while providing Chalet Hotels with exposure to the clean energy sector.

The acquisition of a minority stake in the SPV allows Chalet Hotels to participate in the solar project's development while maintaining its primary focus on the hospitality business. This strategic approach enables the company to benefit from renewable energy investments without requiring full operational control of the power project.

Market Implications

The move demonstrates Chalet Hotels' commitment to environmental sustainability and diversification beyond traditional hospitality operations. Solar power projects in Maharashtra benefit from favorable government policies and abundant solar resources, making it an attractive investment destination for renewable energy initiatives.

Chalet Hotels Limited has made a strategic move into the renewable energy sector by acquiring a 26% equity stake in Pro-zeal Green Power Fourteen Private Limited, a Special Purpose Vehicle (SPV) for solar power generation. This acquisition, valued at Rs 26,000, marks Chalet Hotels' entry into a captive solar power arrangement in Maharashtra.

Key Details of the Acquisition

The company has entered into comprehensive agreements to facilitate this renewable energy initiative. The acquisition involves purchasing 2,600 equity shares at face value of Rs 10.00 each, totaling Rs 26,000.

Project Scope and Objectives

The primary objective of this acquisition is to set up a solar power plant through the SPV. Chalet Hotels aims to participate in a captive arrangement for availing solar power, potentially reducing its reliance on conventional energy sources and moving towards more sustainable operations. The SPV will undertake, implement, operate, manage and maintain the solar power plant project.

Entity Background and Industry Focus

Pro-zeal Green Power Fourteen Private Limited operates in the generation and transmission of renewable energy sector. The SPV was incorporated on June 6, 2025, specifically for setting up the solar power plant. As a newly incorporated entity, historical financial data such as turnover and net worth are not yet available.

Regulatory Compliance and Agreements

As part of the acquisition process, Chalet Hotels has entered into comprehensive agreements in compliance with regulatory requirements. The transaction does not fall within related party transactions, and the promoter/promoter group/group companies do not have any interest in the entity being acquired.

Impact and Future Outlook

This move by Chalet Hotels reflects a growing trend in the hospitality industry towards adopting renewable energy solutions. The acquisition makes Pro-zeal Green Power Fourteen Private Limited an associate of Chalet Hotels. Various regulatory and governmental approvals are required towards commissioning of the project, with completion expected within 8 months of the agreement signing.

By investing in solar power generation, the company aims to reduce its carbon footprint, lower long-term energy costs, and enhance its sustainability profile. The completion of the solar power plant will be a key milestone for the company's renewable energy initiatives.