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Phoenix Mills’ Subsidiary Invests in O2 Renewable XIII for Solar Power Expansion

16 July 20242 mins read by Angel One
Phoenix Mills’ subsidiary invested ₹4.68 crore in O2 Renewable XIII for a 30.95% stake, advancing solar power initiatives in India.
Phoenix Mills’ Subsidiary Invests in O2 Renewable XIII for Solar Power Expansion
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On July 9, 2024, The Phoenix Mills Limited informed in a stock exchange filing that the company’s subsidiary, Sparkle One Mall Developers Private Limited, announced a strategic investment in O2 Renewable Energy XIII Private Limited (O2 Renewable XIII), underscoring its commitment to sustainable energy solutions.

Sparkle One Mall Developers has made an investment of ₹4,68,27,820, which comprises the subscription to 4,68,282 equity shares and 42,145 compulsory convertible debentures of O2 Renewable XIII. This move positions Sparkle One with a substantial 30.95% equity stake in O2 Renewable XIII, a company established to develop and operate a solar power project as a captive generating station.

O2 Renewable XIII, incorporated on May 26, 2023, is a special-purpose vehicle under O2 Energy SG Pte. Ltd., based in Singapore. The primary objective of O2 Renewable XIII is to harness solar energy through its captive generating plant, contributing significantly to sustainable energy goals in India. This investment aligns with Sparkle One’s strategy to become a captive user of renewable energy, thus reducing its carbon footprint and operational costs over the long term.

By acquiring these equity shares and debentures, Sparkle One gains direct participation in O2 Renewable XIII’s solar power initiatives, enhancing its sustainability profile within the retail and commercial real estate sectors. This initiative supports India’s renewable energy ambitions and strengthens Phoenix Mills Limited’s position as a forward-thinking corporate entity committed to environmental stewardship.

The financial terms of the investment include a cash consideration of ₹46,82,820 for the equity shares and ₹4,21,45,000 for the compulsory convertible debentures by subscribing to 42,145 Compulsory Convertible Debentures of ₹1000 each. This strategic move underscores the growing trend among corporate entities to integrate renewable energy solutions into their operational frameworks, anticipating future regulatory and environmental imperatives.

On July 10, 2024, the share price of Phoenix Mills Ltd opened at ₹4,074.75, touching the day’s low at ₹3,945.00, as of 9:48 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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