In a significant move aligning with India’s transition towards clean energy, Epigral Limited has announced a strategic investment in Pro-Zeal Green Power Ten Private Limited, a renewable power producer. The company plans to invest ₹21.38 crore in one or more tranches to subscribe to a minimum of 26% of Pro-Zeal’s securities, which include equity shares and optionally convertible debentures (OCDs).

This investment is part of Epigral's proactive steps to meet its growing power requirements and sustainability objectives through compliance with the Captive Consumer Rules under the Electricity Act.

About Pro-Zeal Green Power Ten Private Limited

Pro-Zeal Green Power Ten Private Limited is a new entrant in the renewable energy generation and transmission sector. Though it is yet to commence its commercial operations, the entity is positioned as a key contributor to Epigral’s long-term captive energy consumption strategy.

Despite its early-stage status, the partnership is poised to provide significant advantages in terms of cost-efficient, green power sourcing once operational.

Is This a Related Party Transaction?

As clarified by Epigral, this is not a related party transaction under current corporate norms. However, post-acquisition, Pro-Zeal will become an associate company of Epigral due to the stakeholding structure.

Importantly, the entire transaction has been executed at arm’s length, ensuring transparency and regulatory compliance.

Industry Outlook: Renewable Energy

India’s renewable energy sector has been gaining momentum, backed by both government initiatives and increasing private participation. The growth of solar and wind energy continues to reshape power generation models in the country.

Epigral’s investment reflects a strategic alignment with this broader trend, signaling its intent to decarbonize its energy consumption and ensure a stable energy supply for upcoming expansions.

Objectives Behind the Investment

The primary reasons behind this strategic investment are:

• To meet the rising power needs of Epigral’s future expansion projects.

• To comply with Captive Consumer rules under the Electricity Act, allowing industries to generate or procure power for self-consumption.

• To support Epigral’s sustainability goals and corporate ESG commitments by sourcing power from renewable energy.

This move showcases how industrial investments in clean energy can create financial value and environmental responsibility.

Approvals and Timeline

No regulatory or governmental approvals are required for this acquisition, which makes the implementation smoother and quicker. The completion of the acquisition will follow the terms and timeframe set in the Share Subscription and Shareholder’s Agreement signed between both parties.

Financial Commitment and Consideration

Epigral has confirmed a cash investment of ₹21.38 crore for acquiring at least 26% of Pro-Zeal’s equity and OCDs. This structured equity infusion in multiple tranches ensures adequate capital deployment over time while minimizing immediate financial impact.

By securing equity ownership, Epigral ensures strategic alignment with the power producer and gains long-term access to renewable power.

Long-Term Impact and Value Creation

This partnership between Epigral and Pro-Zeal is not just about fulfilling compliance. It’s a long-term value creation strategy, delivering benefits such as:

• Stable, low-cost renewable power supply.

• Reduced reliance on traditional power grids and fossil fuels.

• Enhanced ESG ratings and improved corporate sustainability image.

• Cost savings in energy procurement through captive power models.

By investing early in a dedicated power producer, Epigral is laying the foundation for self-reliant energy security.

Future Prospects

Given the expanding scale of Epigral’s operations and the growing focus on green energy integration, this move could be just the beginning. The company may explore further investments or partnerships in the renewable sector, potentially scaling up Pro-Zeal or forming new ventures for larger captive energy projects.

Conclusion

Epigral Limited’s decision to invest ₹21.38 crore in Pro-Zeal Green Power Ten Private Limited marks a pivotal moment in its journey toward energy sustainability and strategic expansion. With no requirement for government approvals, a clear investment strategy, and the promise of green, captive energy, this deal represents a forward-looking move in the energy sector.

As India moves steadily towards a clean energy future, corporate investments like these will be crucial in achieving national and industrial sustainability goals. Epigral’s proactive step reflects not only a commitment to growth but also to responsible business practices that consider both the environment and efficiency.

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