ESAB India Limited Increases Shareholding in Solar Power Company to 17.38%
ESAB India Limited announced an additional equity investment of Rs. 1,94,78,700 in Sunsure Solar Park Twenty-Four Private Limited, increasing its shareholding from 9.78% to 17.38%. The investment is part of a captive consumption arrangement where SSTWPL will supply solar power to ESAB India's manufacturing plants in Tamil Nadu through a Power Purchase Agreement. The transaction is not a related party transaction and supports ESAB India's sustainable energy initiatives.
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ESAB India Limited has announced a strategic investment to increase its shareholding in a renewable energy company, marking another step in its sustainable energy initiatives. The company disclosed its plans to make an additional equity investment in Sunsure Solar Park Twenty-Four Private Limited (SSTWPL) under SEBI LODR Regulations.
Investment Details and Shareholding Changes
The additional equity subscription will significantly increase ESAB India's stake in the solar power company. The investment structure and shareholding changes are outlined below:
| Parameter: | Details |
|---|---|
| Current Shareholding: | 9.78% |
| Post-Investment Shareholding: | 17.38% |
| Additional Equity Investment: | Rs. 1,94,78,700 |
| Amount Invested Till Date: | Rs. 17,19,480 |
| Total Board Approved Amount: | Rs. 21,200,000 |
| Nature of Consideration: | Cash |
Target Company Profile
Sunsure Solar Park Twenty-Four Private Limited is a renewable energy company incorporated on April 10, 2024. The company is registered in Gurgaon, Haryana, and operates in the renewable energy sector.
| Company Details: | Information |
|---|---|
| Incorporation Date: | April 10, 2024 |
| Registered Office: | 1101A-1107, 11 Floor BPTP, Park Centra, Sector 30, Gurgaon, Haryana |
| CIN: | U35105HR2024PTC120630 |
| Authorized Capital: | Rs. 10,00,000 |
| Paid-up Capital: | Rs. 1,27,430 |
| Current Turnover: | Nil (yet to commence commercial operations) |
| Business Focus: | Generation and supply of electricity from renewable energy resources |
Strategic Rationale and Power Purchase Agreement
SSWTPL is in the process of establishing a solar power generation plant designed to supply electricity to corporate entities under captive consumption arrangements. ESAB India has entered into a Power Purchase Agreement with SSWTPL to procure electricity for meeting energy requirements at its manufacturing plants located in Tamil Nadu.
The investment aligns with ESAB India's energy strategy and will enable the company to become an eligible power consumer under the captive consumption framework. The commencement of the power project remains subject to receipt of all necessary consents and permissions from regulatory authorities for open access captive consumption of electricity.
Regulatory Compliance and Transaction Nature
The company confirmed that this transaction does not constitute a related party transaction, and the promoter or promoter group has no interest in SSWTPL. The investment represents a subscription of equity in the power generating company rather than a traditional acquisition, positioning ESAB India as an eligible power consumer under renewable energy regulations.
No specific governmental or regulatory approvals are required for this equity subscription. The investment supports ESAB India's commitment to sustainable energy solutions while securing long-term power supply arrangements for its manufacturing operations in Tamil Nadu.
Historical Stock Returns for ESAB India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.78% | -0.86% | -8.91% | +3.80% | +7.78% | +219.12% |
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