Laurus Labs has announced that its board has approved the acquisition of up to 26% of the share capital in Kurnool Renewables, a special purpose vehicle (SPV) and subsidiary of Ecoren Energy India (Ecoren), with an investment of up to Rs 35 crore.
The strategic move will enable Laurus Labs to access 25.53 MW of renewable wind and solar energy, which aligns with regulatory requirements under Indian Electricity Laws and government policies for captive consumption of power. The investment is aimed at reducing electricity costs, ensuring a reliable green power supply, and obtaining carbon credits, thus contributing to the company’s environmental, social, and governance (ESG) objectives.
Kurnool Renewables is engaged in the production of renewable energy, primarily from solar and wind sources. Laurus Labs’ investment will support the development of the renewable power project, which will be used for captive consumption. This acquisition is expected to provide benefits such as reduced energy costs, enhanced energy security, and increased operational stability along with potential environmental advantages.
The equity shares will be subscribed at an issue price determined by Kurnool Renewables, with a total investment of up to Rs 35 crore. The payment will be made in cash in three stages: 30% within 30 days from the execution of agreements, 40% upon placing orders for major equipment, and the remaining 30% upon receipt of major equipment at the project site.
The acquisition does not fall within the purview of a related party transaction.
In addition, Laurus Labs’ board has approved the re-appointment of V.V. Ravi Kumar as the Executive Director and Chief Financial Officer (CFO) of the company for a period of two years, effective from 1 April 2025, subject to shareholder approval.
