Primo Chemicals Limited has informed regarding Disclosure of material issue
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Primo Chemicals Limited has formally executed transaction documents to invest Rs. 21 crores for subscribing to 26% equity stake in TPCS Private Limited, a Special Purpose Vehicle (SPV). The investment is for developing, owning, and operating a 49.998 MW AC Solar Power Plant under captive mode on OPEX model. Two key agreements were signed: a Power Purchase Agreement (PPA) with TPCS Private Limited and a Share Subscription and Shareholders' Agreement (SSSHA) with TPCS, Sun Photonics Private Limited, and Arpa Infrastructure Developers Private Limited. The company will have pari passu rights with promoters including distribution rights, dividends, and liquidation proceeds. Primo also gets a right of first refusal for any future stake transfers by promoters. The transaction is not a related party transaction and is not at arm's length as per disclosure.
This investment provides Primo Chemicals with captive solar power capacity while earning returns as a minority equity investor. The 26% stake gives the company significant protective rights over the SPV's operations and future actions, aligning with its energy cost optimization strategy.