JK Lakshmi Cement to Acquire 26% Stake in Renewable Energy SPV

JK Lakshmi Cement Ltd has announced plans to acquire a 26% equity stake in Opera Vayu (Narmada) Private Limited, a Special Purpose Vehicle (SPV) focused on renewable power, as per a recent exchange filing. The decision was approved by the Committee of Directors at a meeting held on August 1, 2025. 

The acquisition will be made through a cash investment of up to ₹4 crore.

Purpose and Project Details

The investment is part of JK Lakshmi Cement’s plan to source renewable energy through the captive power route. Opera Vayu (Narmada) will set up a 4 MWp wind and solar hybrid power plant. The company will supply electricity to JK Lakshmi Cement’s plant locations for a duration of 12 years.

Background of the SPV

Opera Vayu (Narmada) Private Limited was incorporated on August 1, 2022. As of FY25, the company had no turnover or profit. Its reported net worth stood at ₹77.56 crore. The project is being implemented by Shivman Wind Energy Private Limited.

Structure of the Transaction

The acquisition does not fall under the related party transaction category. No regulatory or governmental approvals are required to proceed. The transaction will be completed in cash and is expected to close by December 31, 2025. Post-acquisition, the SPV will be considered an associate company of JK Lakshmi Cement.

Read more: Chettinad Cement and JK Lakshmi Eye Deccan Cements in $360 Million Deal!

Energy Sourcing and Agreements

JK Lakshmi Cement will enter into 2 agreements with the SPV,  a Power Purchase Agreement and a Share Subscription & Shareholders’ Agreement. These agreements formalise the supply of renewable power generated by the SPV to JK Lakshmi Cement under the captive model.

JK Lakshmi Cement Share Price Performance 

As of 9:41 AM on August 4, 2025, JK Lakshmi Cement share price was trading at ₹975.90, a 0.20% increase.

Conclusion

The captive power arrangement is aimed at reducing energy procurement costs. It also allows the company to meet a portion of its power needs through wind and solar sources, starting with a 4 MWp project. The deal is expected to close within the 2025 calendar year.

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