In a strategic move to bolster its renewable energy portfolio, CG Power and Industrial Solutions Limited has announced the acquisition of a 10.10% equity stake in CGE II Hybrid Energy Private Limited. The transaction, valued at Rs. 9.52 crore, will aid in enhancing the supply of renewable power for CG Power’s plant located in Alwar, Rajasthan.

Details of the Acquisition

The acquisition includes 9,520,200 equity shares of face value Rs. 10 each. The purchase will be made through cash consideration via online banking, ensuring a smooth and transparent transaction process.

CGE II Hybrid Energy: Company Overview

CGE II Hybrid Energy Private Limited was incorporated on December 2, 2021, with the objective of engaging in power generation, distribution, transmission, and supply. The company has not generated revenue in the past three financial years, but this acquisition marks a significant step in its operational expansion.

Strategic Importance of the Investment

CG Power aims to develop a 10MW wind-solar hybrid power project, which will qualify as a captive consumer under the Electricity Act/Rules. This move aligns with India’s growing push towards renewable energy solutions and sustainability. By integrating wind and solar power sources, CG Power intends to enhance operational efficiency and reduce dependency on non-renewable energy sources.

Regulatory and Financial Considerations

The acquisition does not involve any related party transactions, ensuring that there is no involvement of the promoter or promoter group in the deal. Additionally, no governmental or regulatory approvals are required to complete this acquisition.

Timeline for Completion

The acquisition is expected to be finalized by June 30, 2025, subject to customary conditions. This provides CG Power ample time to integrate CGE II Hybrid Energy into its renewable energy strategy and leverage the hybrid project effectively.

Future Prospects and Market Impact

With a growing emphasis on renewable energy adoption, this acquisition strengthens CG Power’s position in the power generation sector. Investors and industry experts anticipate that this move will lead to long-term cost savings, improved energy security, and enhanced sustainability practices for the company.

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