Mumbai, February 28, 2025: Chemplast Sanmar Limited (NSE: CHEMPLASTS), in a strategic move aimed at bolstering its renewable energy sourcing, has announced the acquisition of a 26.27% stake in JSW Green Energy Nine Limited, a special purpose vehicle (SPV) set up to establish hybrid renewable energy power plants in Tamil Nadu. The total consideration for the transaction is ₹30.43 crores.
Key Highlights of the Acquisition:
| Particulars | Details |
|---|---|
| Total Stake Acquired | 26.27% |
| Chemplast Sanmar's Direct Stake | 18.46% |
| Chemplast Cuddalore Vinyls Ltd Stake | 7.81% |
| Total Acquisition Cost | ₹30.43 crores |
| Consideration Type | Equity Shares |
| Nature of Acquisition | Group Captive Power Scheme |
| Target Company Industry | Renewable Energy (Solar & Wind) |
| Date of Incorporation (Target SPV) | October 18, 2024 |
| Regulatory Approvals Required | None |
| Transaction Structure | In Tranches |
Strategic Benefits of the Acquisition:
JSW Green Energy Nine Limited will develop renewable power generation facilities comprising 64.9 MW AC of solar power and 20 MW of wind power. The generated electricity will be supplied exclusively to Chemplast Sanmar and its wholly-owned subsidiary, Chemplast Cuddalore Vinyls Limited (CCVL), under a group captive power arrangement.This move aligns with Chemplast Sanmar’s sustainability objectives, significantly reducing energy costs and enhancing operational efficiency through green energy consumption on a long-term basis.
Management Commentary:
Commenting on the acquisition, the company emphasized:Background on the Acquired Entity:
JSW Green Energy Nine Limited was incorporated recently and is dedicated to the generation and transmission of renewable electricity sourced from solar and wind energy. As the SPV has not yet commenced operations, it reported no turnover or profit after tax (PAT) for the past three fiscal years.The transaction will not involve any related-party engagements and is structured at arm's length.
The acquisition reflects Chemplast Sanmar’s strategic foresight in integrating renewable energy solutions to optimize its energy consumption, aligning with industry trends and sustainability goals.
