The Phoenix Mills Limited has informed the Exchange about Acquisition
PHOENIXLTD · price
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Phoenix Mills, along with its subsidiary Offbeat Developers, is acquiring a stake in O2 Renewable Energy XXVIII Private Limited, a solar power company promoted by JSW Neo Energy. Total investment is about Rs. 5.93 crore — Phoenix Mills contributes Rs. 2.82 crore in equity and Rs. 2.54 crore in compulsorily convertible debentures, while Offbeat puts in Rs. 31.1 lakh in equity and Rs. 2.80 crore in CCDs. The combined shareholding will not exceed 45% of O2 Renewable XXVIII's equity capital on a fully diluted basis. The acquisition is aimed at meeting the 26% minimum shareholding requirement under the Electricity Act, 2003 so that Phoenix Mills can qualify as a 'captive user' of the solar power generated. A separate Power Purchase Agreement has been signed for the company and Offbeat to buy solar electricity from O2 Renewable XXVIII. The deal is entirely in cash, is not a related party transaction, and is expected to close within 90 business days.
This is a small, strategic acquisition (under Rs. 6 crore) aimed at securing captive solar power for Phoenix Mills' operations, which could help lower long-term electricity costs and strengthen its sustainability profile. Financially insignificant in the near term but signals the company's push toward renewable energy for its malls and real estate assets.