PRIMO · price
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Primo Chemicals Ltd has formally executed transaction documents to invest Rs. 21 crores for subscribing to 26% equity shares in TPCS Private Limited, a Special Purpose Vehicle. This investment is for developing, owning, operating and maintaining a 49.998 MW AC Solar Power Plant under captive mode on OPEX model. The company has signed a Power Purchase Agreement (PPA) and a Share Subscription and Shareholders' Agreement (SSSHA) with TPCS and its promoters. Primo will have pari passu rights with the promoter group including first right of refusal for future stake transfers. The transaction is not a related party transaction. This represents Primo Chemicals' entry into renewable energy for captive power consumption.
This is a positive strategic move as the company secures captive solar power at potentially lower energy costs while diversifying into renewables. The Rs. 21 crore investment shows commitment to sustainable operations but represents a moderate capex commitment for the company.