Announced Wed, 27 May · 19:32 IST

The Company will be investing in 1,40,000 equity shares of Clean Wind Power (Manvi) Pvt Ltd. The Company has today entered into Share Subscription cum Shareholder''s Agreement (SSSHA) with ....

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₹94.00
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AI summary

South India Paper Mills Ltd will invest Rs 14 lakh to acquire 1,40,000 equity shares (26% stake) in Clean Wind Power (Manvi) Pvt Ltd. The company has entered into a Share Subscription cum Shareholder's Agreement along with Hero Rooftop Energy Pvt Ltd. Clean Wind Power is an Independent Power Producer operating in Karnataka's wind energy sector. Under the Group Captive Structure, South India Paper Mills will receive 11.6 million units of wind power annually for its industrial facilities at Nanjangud and Thandavapura. The target company had turnover ranging from Rs 609-854 million over the past three years. The acquisition is not a related party transaction and is expected to complete by July 2026 with power supply starting August 2026.

Likely market impact

This investment helps South India Paper Mills secure renewable energy for its manufacturing operations at competitive rates, potentially reducing electricity costs and meeting sustainability requirements. The 26% stake provides captive power benefits under group captive norms while requiring relatively modest capital deployment.