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Biocon Ltd, a global biopharma company, has announced that it has entered into an agreement to acquire 26 per cent equity stake on a fully diluted basis in power generation company - Hinduja Renewables Two Private Limited (HRTPL) for ₹5.91 crore.
The company in a regulatory filing to exchanges said it has entered into an agreement on November 21 and HRTPL is a special purpose vehicle formed for power generation and developing a captive power plant as per electricity laws.
On the objects and effects of the acquisition, Biocon said: “To enhance the renewable-based power consumption, Biocon will acquire and maintain 26 per cent stake on a fully diluted basis in HRTPL throughout the term of the Power Purchase Agreement (PPA) to maintain captive status as per Electricity Act, Share Purchase, Subscription and Shareholders Agreement and other transaction documents.”
The deal, which is a cash consideration, is expected to be completed by December 15 and cost of acquisition is ₹5.91 crore.
HRTPL was incorporated on September 25, 2020, which is in the business of power generation and will develop a 19.77 MW wind power plant (captive) at Raichur District in Karnataka. Since the company incorporated recently, it has no turnover as on date.
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