ASK Automotive Powers Up with Strategic Solar Investments

On August 6, 2024, ASK Automotive Limited signed a Shareholders’ Agreement (SHA) and a Share Subscription Agreement (SSA) with Blupine Energy Private Limited and Solarcraft Power India 25 Private Limited. They also signed similar agreements with Blupine and Solarcraft Power India 26 Private Limited.

Investment in Solarcraft Power India 25 Private Limited

ASK Automotive Limited will invest ₹82,00,000 in one or more tranches to acquire a minimum of 26% of Solarcraft Power India 25’s equity share capital and compulsory convertible debentures. Subject to customary conditions, the transaction is expected to be completed within 90 days.

This investment will be made in cash and is not a related party transaction, with no promoter or group company interest in the entity. ASK Automotive Limited has also agreed to purchase solar power from Solarcraft 25’s plant in Karnataka through a Power Purchase Agreement (PPA).

Investment in Solarcraft Power India 26 Private Limited

On the same day, their wholly-owned subsidiary, ASK Automobiles Private Limited, signed similar agreements with Blupine and Solarcraft Power India 26 Private Limited. This investment of ₹1,43,50,000 will secure at least 26% of Solarcraft 26’s equity and convertible debentures and also includes a PPA to source solar power from Solarcraft 26’s Karnataka plant. Similar to the first, this deal will be cash-based and expected to conclude within 90 days.

Both acquisitions aim to enhance our renewable energy sources, with transactions conducted at “arm’s length” and requiring no regulatory approvals. The acquisition is not classified as a related party transaction. The promoters or their group companies have no interest in Solarcraft Power India 26, and the transaction is conducted at “arm’s length.

About ASK Automotive Limited

ASK Automotive Limited, founded in 1988, is a prominent manufacturer of advanced braking systems for two-wheelers in India. It holds the largest market share in this sector, commanding 50% of the production volume for both OEMs and the independent aftermarket in FY23. The company’s product portfolio is diverse, with advanced braking (AB) systems contributing 38% of its revenue in Q1FY24, aluminium lightweight precision (ALP) products making up 43%, wheel assemblies at 13.5%, and safety control cables at 3.54%.

On August 07, 2024, Ask Automotive Ltd’s share price opened at ₹384.65, touching the day’s high at ₹395.25 at 11:23 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.