CIE Hosur Limited Acquires 27.89% Stake in Ojaha Renewables

On April 25, 2024, CIE Automotive India Limited informed in an exchange filing that the company’s wholly-owned subsidiary, CIE Hosur Limited (CHL), entered into a Share Subscription and Shareholders Agreement (SSSHA) with Ojaha Renewables Private Limited (ORPL) wherein CHL had agreed to invest and subscribe equity share capital of ORPL.

Details of the Acquisition

CIE Automotive India Limited stated that on April 25, 2024, CIE Hosur Limited was allotted 2,02,500 equity shares of ₹10 each at a premium of ₹70 per equity share, which constitutes 27.89% of Ojaha Renewables Private Limited’s paid-up equity share capital. Ojaha Renewables Private Limited has become an Associate of CIE Hosur Limited.

CIE Hosur Limited has invested ₹16.2 million to set up captive solar power generating plants with an aggregate capacity of 4.5 MWp, which constitutes 27.89% of Ojaha Renewables Private Limited’s paid-up share capital.

Ojaha Renewables Private Limited was incorporated on August 18, 2023, and is involved in setting up captive power generation projects and developing renewable energy assets in India.

Regarding the objectives of the acquisition, the company stated that Ojaha Renewables Private Limited will be setting up captive generating plants with a capacity of 4.5 MWp and supplying solar power from this plant to CIE Hosur Limited’s factory in Tamil Nadu. In order to qualify as a captive consumer, the company must hold at least 26% of the total equity capital of the power generating plant(s). Accordingly, the investment is essential to qualify as a captive consumer and thereby optimising the power cost at CIE Hosur Limited’s plant in Tamil Nadu.

About CIE Automotive India Limited

CIE Automotive India Limited is involved in the production and sale of automotive components to Original Equipment Manufacturers (OEM) and different clients in India and overseas. Mahindra CIE Automotive Limited is a subsidiary of CIE Automotive S.A, Spain. In Q3 FY 2024, the company reported a total income of ₹1,137.46 crore.

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