Enclosed the update on investment in First Energy TN1 Private Limited.
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Magna Electro Castings has signed a Captive Power Agreement and Share Subscription and Shareholders Agreement with First Energy TN1 Private Limited (FETN1PL), a Pune-based solar power company. The company is investing Rs. 39.60 lakhs to acquire 3,96,000 additional equity shares at Rs. 10 each, raising its stake from 6.25% to 7.83%. The investment is aimed at meeting the Electricity Act, 2003 requirement that captive users hold at least 26% in the power entity. As part of the deal, the board has also approved procuring an additional 1.1 MWp of power under a Group Captive Solar Power Expansion Project at Sivaganga, Tamil Nadu. FETN1PL's turnover grew from Rs. 186.32 lakhs in FY23 to Rs. 855.46 lakhs in FY25. The transaction is not a related-party deal and is fully cash-funded.
This is a small, operationally-driven investment to secure captive solar power for the company's foundry operations and stay compliant with electricity regulations — unlikely to have a material effect on stock price or shareholder value, though it supports long-term energy cost stability.