DCM Shriram has announced a major board decision to invest in renewable energy infrastructure, marking a significant step towards sustainable operations. The company's board meeting held on March 12, 2026, approved a comprehensive investment package for a renewable energy project at its Bharuch plant, with completion targeted by June 2027.

Investment Breakdown

The board has sanctioned a total financial commitment comprising two key components for the renewable energy initiative:

Project Specifications and Timeline

The renewable energy project will enable the company to obtain approximately 48 MW of additional renewable power supply for its Bharuch plant. This translates to around 30 MW round the clock at 75% capacity utilization factor. The project implementation is expected to be completed by June 2027.

Investment Structure

The equity investment of up to ₹87 crore will be made in one or more tranches for a minimum 26% equity stake in one or more Special Purpose Vehicles. These SPVs will be created specifically for setting up the renewable energy power project. The capital expenditure of up to ₹130 crore will be directed towards related infrastructure development.

Strategic Impact

This investment will significantly enhance DCM Shriram's renewable energy capacity at the Bharuch plant, taking the total renewable energy power provision from the present peak of 50.4 MW to 98.4 MW. The board meeting, which commenced at 3:00 PM and concluded at 3:50 PM, demonstrates the company's commitment to expanding its renewable energy capabilities and incorporating sustainable practices into its operational framework.

DCM Shriram consolidated has completed the allotment of Non-Convertible Debentures worth ₹440 crores through private placement, with the maturity date scheduled for May 15, 2036. The company informed both BSE Limited and National Stock Exchange of India about this significant fundraising initiative under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Debenture Issue Structure

The debenture issue comprises 4,400 units with specific parameters that define its comprehensive structure:

Tenure and Interest Framework

The debentures carry a 10-year tenure with the allotment date set for March 11, 2026, and maturity scheduled for May 15, 2036. The interest structure features a floating rate linked to MIBOR OIS rate as per the terms of the Debenture Trust Deed.

Repayment follows a half-yearly schedule, occurring on November 15 and May 15 of each year. The repayment cycle commences from November 15, 2028, providing the company with an initial period before principal repayments begin.

Security and Collateral Arrangements

The debentures are backed by comprehensive security arrangements over the company's Bharuch Unit assets:

Redemption and Terms

The redemption will be executed according to the debenture trust deed terms, with the final redemption date being May 15, 2036. The debentures do not carry any special rights, interests, or privileges, maintaining a straightforward debt instrument structure. The company has confirmed no delays in payment or defaults, with all terms clearly defined in the regulatory filing.