In a move aligned with its commitment towards sustainable growth and clean energy consumption, Valiant Organics Ltd. has announced its decision to acquire a 26.25% stake in Pro-Zeal Green Power Eight Private Limited (PGP8L). This strategic acquisition underlines the company’s intent to optimize energy costs and transition to renewable energy sources for captive use.

About the Target Entity: Pro-Zeal Green Power Eight Private Limited

Pro-Zeal Green Power Eight Private Limited (PGP8L) is a newly incorporated company, having been registered on December 24, 2024, under the Corporate Identity Number U35105GJ2024PTC157334. As a Special Purpose Vehicle (SPV), the entity currently has no turnover. Its operational domain lies in the generation and transmission of renewable energy, with a focus on solar power.

The company is expected to play a pivotal role in supporting Valiant Organics’ captive energy needs, delivering electricity generated via solar infrastructure. This marks a major step for Valiant in embedding sustainable energy practices into its manufacturing and operational value chain.

Structure and Nature of the Transaction

This acquisition qualifies as a related party transaction. The parent company of PGP8L is Prozeal Green Power Private Limited (PGPPL), which in turn is a wholly owned subsidiary of Prozeal Green Energy Limited (PGEL). PGEL has prominent members of Valiant Organics’ promoter and promoter group as shareholders and directors, including:

• Shri Arvind Kanji Chheda – Shareholder of PGEL

• Shri Chandrakant Vallabhaji Gogri (jointly with Jaya Chandrakant Gogri) – Shareholder and Non-Executive Director

• Smt. Jaya Chandrakant Gogri (jointly with Chandrakant Gogri and Hetal Gogri Gala) – Shareholder

Despite the related party nature, the acquisition will be executed at arm’s length as per applicable corporate governance guidelines.

Objective of the Acquisition

The primary objective of this strategic acquisition is to reduce dependency on conventional power sources by procuring power through renewable resources. The energy generated by the SPV (PGP8L) will be supplied to Valiant Organics for captive consumption, aligning with regulations under India’s Electricity Laws.

This initiative is a part of Valiant’s long-term strategy to:

• Enhance sustainability in operations

• Reduce carbon footprint

• Lower energy costs

Financial Consideration and Structure

The acquisition involves both equity and debt instruments:

• Equity Investment:
  Subscription of 63,000 equity shares of ₹10 each, amounting to ₹6.30 lakh, representing 26.25% of PGP8L’s post-transaction paid-up capital.

• Compulsory Convertible Debentures (CCDs):
  Subscription of 28,410 CCDs valued at ₹1,000 each, amounting to ₹2.84 crore.

Thus, the total outlay stands at ₹2.90 crore, which will be paid in a phased manner.

Timelines and Regulatory Requirements

The acquisition is set to be completed within 30 days from the date of signing the Share Subscription and Shareholders’ Agreement.

It is important to note that no external or governmental approvals are required for this acquisition, as it falls within the purview of routine corporate actions permitted under Indian corporate law and electricity regulations.

Strategic Fit and Future Potential

The acquisition is highly strategic for Valiant Organics, as it offers:

• Energy security through captive solar generation

• A cost-effective energy solution for long-term operations

• Alignment with ESG goals (Environmental, Social and Governance)

This move also places Valiant in a stronger position in terms of industry competitiveness, especially as global and Indian industries alike face rising energy costs and increasing environmental compliance mandates.

About Pro-Zeal Green Power Eight’s Broader Vision

While PGP8L is in its nascent stages, it forms part of a broader green energy vision. As part of the Prozeal group, the SPV is expected to eventually contribute to larger infrastructure solutions in areas such as:

• Solar, wind, hydro, tidal, and geothermal energy

• EV charging infrastructure

• Traffic and transportation systems

• Oil and gas sector consulting

This diversification ensures that Valiant Organics will not only benefit from captive solar energy, but also remain at the forefront of any future collaboration opportunities with a company heavily invested in clean and green energy transitions.

Conclusion

This acquisition signifies Valiant Organics’ serious intent to shift towards renewable energy adoption. By acquiring a 26.25% stake in Pro-Zeal Green Power Eight, the company is securing reliable, cost-effective, and clean energy for its operational needs. The synergy between Prozeal’s expertise and Valiant’s manufacturing capability sets a strong precedent for industry-wide green partnerships in India.

With increasing focus on environmental sustainability, this move will likely set a benchmark for other chemical and infrastructure companies looking to cut costs while fulfilling ESG commitments.

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