Siemens Ltd said it has inked an agreement for subscription of 26 per cent paid-up equity share capital of Sunsole Renewables for Rs 1.6 crore.
In a regulatory filing the company said that in its continuing efforts to reduce carbon footprint and the impact on climate change, the company has decided to procure solar power for its manufacturing facility at Kalwa, in Maharashtra.
The company has executed a Power Purchase Agreement and on Friday entered into a Share Subscription and Shareholders Agreement for the subscription of 26 per cent of the paid-up equity share capital of Sunsole Renewables Private Limited, subject to fulfilment of conditions precedent as agreed between the parties, the filing said.
As per the filing, the cost of acquisition or the price at which the shares are acquired, is Rs 16 million (Rs 1.6 crore in one or more tranches).
Pursuant to statutory requirements, in order to avail such power/electricity for captive usage, Siemens Limited is required to subscribe to at least 26 per cent of the paid-up equity share capital of Sunsole, it said. Post-acquisition, Sunsole will be an Associate of Siemens Limited.
Sunsole was incorporated as a special purpose vehicle by Cleantech India OA Pte Ltd to undertake construction, operation and maintenance of a solar power plant and to supply, on a captive basis, the power generated from the said solar power plant.
Sunsole currently does not have any operations and corresponding turnover. It was incorporated on February 4, 2020 and has had no revenue since incorporation. Accordingly, disclosure of turnover for the last three years is not applicable, it stated. The paid-up equity share capital of Sunsole is Rs 1 lakh.
Source: Financial Express