UltraTech to acquire 26% equity of O2 Renewable Energy

Renewable acquisition: UltraTech Cement has entered an Energy Supply Agreement for owning 26 per cent equity of O2 Renewable Energy, the company said on March 27.

The acquisition will aid the Aditya Birla Group firm to meet its energy needs, optimise energy costs and comply with regulatory requirements associated with captive power consumption under electricity laws, it informed in a regulatory filing.

O2 Renewable Energy is engaged in the generation and transmission of solar power.

The cement maker has forged an energy supply agreement and share subscription and shareholders agreement with O2 Renewable Energy, it said.

UltraTech said the acquisition will be completed within 180 days from the execution of energy supply agreement and share subscription and shareholders agreement. 

The cost of acquisition has been marked out as Rs 15.68 crore, as per the filing.

Incorporated in August 2023, New-Delhi registered O2 Renewable Energy is a special purpose vehicle (“SPV”) for setting up 35.20 MW AC / 47.52 MW DC solar power project on a captive basis at Village Rampura and Jagatagere, Taluka Kotturu, in the Vijaynagara district of Karnataka.  

UltraTech Cement is the largest manufacturer of grey cement and ready mix concrete (RMC), and has operations in UAE, Bahrain, Sri Lanka apart from India. 

UltraTech Cement has a market capitalisation of 2,77,874.46 crore. 

Shares of UltraTech Cement closed 0.26 per cent higher at Rs 9625.35 as on March 27, 2024.