Enviro Infra Engineers Limited, a leading player in India’s infrastructure sector, has announced the acquisition of EIE Renewables Private Limited, a newly incorporated company. This acquisition aligns with Enviro Infra's long-term growth strategy and its vision to expand into the rapidly growing renewable energy sector. Through this acquisition, Enviro Infra seeks to tap into the vast potential of sustainable energy generation, specifically focusing on non-conventional energy sources such as wind, solar, and other renewable sources.

Target Company Overview
EIE Renewables was incorporated on February 18, 2025, and is focused on power generation through renewable sources. The company has an authorized capital of ₹10,00,000 and paid-up capital of ₹10,00,000, with 1,00,000 equity shares at ₹10 per share. While the company’s turnover has not yet begun as it is newly incorporated, the future potential in India’s renewable energy market is considerable. Post-acquisition, EIE Renewables will become a wholly owned subsidiary of Enviro Infra Engineers Limited.

Strategic Importance of the Acquisition
This acquisition positions Enviro Infra Engineers Limited as a forward-thinking entity poised to capitalize on the growing demand for renewable energy solutions in India. The company's entry into this market will support sustainable development and contribute to India’s clean energy goals. The decision to acquire EIE Renewables reflects a deliberate strategy to be part of the government’s push for Atmanirbhar Bharat (self-reliant India) by fostering indigenous renewable energy production.

Details of the Related Party Transaction
This acquisition is categorized as a related party transaction as the promoter directors of Enviro Infra Engineers, Mr. Sanjay Jain and Mr. Manish Jain, are also the directors and shareholders of EIE Renewables, each holding 50,000 shares in the target company. However, the acquisition will be conducted at arm's length, ensuring fairness and transparency in the transaction. The initial investment of ₹10,00,000 will secure Enviro Infra a 100% stake in the target company.

Future Investment Plans and Structure
Following the initial acquisition, Enviro Infra plans to further invest up to ₹49.90 crore through fresh allotment of shares or loan funding, which will have the option to be converted into equity in future tranches. This substantial investment will help expand the renewable energy capacity and accelerate the growth of EIE Renewables under the ownership of Enviro Infra. The final structure of these investments and the method of capital allocation will be determined in the coming months.

Government Approvals and Regulatory Compliance
This acquisition does not require any additional governmental or regulatory approvals. It complies fully with the Companies Act, 2013 and other relevant regulations governing such transactions in India. With no external approvals required, the acquisition process is expected to proceed smoothly.

Completion Timeline
Enviro Infra Engineers has set a tentative timeline for the completion of this acquisition by June 30, 2025. This provides sufficient time for finalizing the formalities of the transaction and ensuring full integration of EIE Renewables as part of Enviro Infra’s broader business operations.

Consideration and Terms of the Deal
The acquisition is being carried out with a cash consideration of ₹10,00,000 for the purchase of 1,00,000 equity shares at ₹10 each. This initial investment makes EIE Renewables a wholly owned subsidiary of Enviro Infra Engineers. The company’s further plans for capital infusion involve an investment of ₹49.90 crore, ensuring that EIE Renewables is well-funded for future growth in India’s renewable energy sector.

Business Potential and Future Growth
Post-acquisition, EIE Renewables is set to benefit from Enviro Infra Engineers’ strong engineering and manufacturing capabilities, which will enable it to scale operations and expand its market presence. The target company is expected to play a crucial role in power generation through sustainable sources such as solar and wind energy, in line with India’s green energy transition.

Conclusion
The acquisition of EIE Renewables by Enviro Infra Engineers marks a significant step toward expanding the company’s footprint in the renewable energy sector. The investment aligns with the Indian government's push for sustainability and clean energy, while also creating potential for global market opportunities in the long run. As the renewable energy landscape in India grows, Enviro Infra Engineers stands to benefit from an enhanced market position and the ability to provide innovative and sustainable energy solutions to both local and international clients.

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