Strides Pharma has taken a significant step towards enhancing its sustainability efforts through the acquisition of AMPIN Energy C&I, a company dedicated to the generation and transmission of solar energy and other forms of renewable energy. This acquisition aligns with Strides' strategic goal to increase the utilization of renewable power sources in its operations, particularly at its facility in Alathur, Chennai.

AMPIN Energy C&I, incorporated on December 8, 2023, operates as a special purpose entity formed specifically for setting up captive solar power projects in Tamil Nadu. With a focus on renewable energy generation, AMPIN C&I will play a crucial role in enabling Strides Pharma to meet its energy needs sustainably. Although the company's turnover for FY24 is projected to be nil, its business model is expected to gain momentum as it engages in renewable energy projects.

The acquisition does not fall under the category of related party transactions, as none of the promoters or group companies of Strides Pharma have any interest in AMPIN C&I. This ensures that the transaction is conducted at “arms’ length,” maintaining transparency and adherence to corporate governance standards.

The renewable energy sector is rapidly evolving, and Strides Pharma's investment in AMPIN C&I reflects its commitment to comply with regulatory requirements under Indian Electricity Laws for being a ‘captive user.’ This move is crucial as it allows Strides to secure electricity from renewable sources at mutually agreed terms, thereby reducing dependency on non-renewable energy sources and contributing to its long-term sustainability goals.

The acquisition of AMPIN Energy C&I requires no governmental or regulatory approvals, which facilitates a smoother transaction process. The anticipated completion of the acquisition is set for Q4 FY25, allowing Strides ample time to integrate AMPIN's operations into its existing framework effectively.

The total consideration for this acquisition is up to Rs. 1.61 crore, securing a 2.48% stake in AMPIN Energy C&I on a fully diluted basis. This financial commitment underscores Strides Pharma's proactive approach to investing in sustainable energy solutions that align with its operational requirements and corporate ethos.

Key Takeaways

• Strides Pharma is taking strides towards renewable energy through its acquisition of AMPIN Energy C&I.
• This acquisition enables Strides to utilize solar energy at its facility in Alathur, Chennai, supporting its sustainability goals.
• The deal, valued at up to Rs. 1.61 crore for a 2.48% stake, is expected to complete by Q4 FY25.

By investing in renewable energy, Strides Pharma is not only enhancing its operational capabilities but also contributing to a greener future in line with global sustainability trends. This acquisition is an essential part of their strategy to meet increasing energy demands sustainably and efficiently.

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