CIE Automotive India to Acquire 27% Stake in Ijya Renewables for Captive Solar Power Plant Development

CIE Automotive India Ltd announced today that it has entered into a shareholders' agreement to acquire up to 27% of the equity of Ijya Renewables India Project Pvt Ltd on a fully diluted basis. The strategic investment of Rs 25.54 million will help establish captive solar power plants with a total capacity of 7.5 MWp, aligning with CIE Automotive’s commitment to sustainable energy solutions.

Investment to Establish Captive Solar Power Plants

As part of the agreement, CIE Automotive will initially acquire 49% of Ijya Renewables' paid-up equity share capital. However, this stake will later be reduced to 27% due to the issuance of quasi-equity instruments to Ijya Renewables' promoter shareholders. This strategic move is designed to qualify CIE Automotive as a captive customer under current regulations, which require a minimum 26% equity stake in a power-generating entity. This qualification is essential for optimizing power costs and ensuring a reliable green energy supply for CIE Automotive.

Benefits of the Strategic Investment

With this investment, CIE Automotive will secure access to green energy from Ijya Renewables' solar power plant. By aligning with renewable energy initiatives, the company aims to reduce its carbon footprint and energy costs while supporting sustainable practices. Upon completion of the investment, Ijya Renewables will become an associate company of CIE Automotive India, further solidifying the partnership between the two entities. The deal is expected to be finalized within the next four months.

About Ijya Renewables and CIE Automotive India

Ijya Renewables India Project Pvt Ltd specializes in developing and operating renewable energy projects, focusing on sustainable energy solutions. This partnership marks a significant step forward in its mission to expand its renewable energy footprint in India.

Meanwhile, CIE Automotive India has been performing strongly in the market, recently reporting a consolidated net profit of Rs 2.17 billion for the June quarter, with revenue reaching Rs 22.93 billion. The company’s shares closed at Rs 586.50 on the National Stock Exchange, showing a rise of 0.39%, reflecting positive investor sentiment towards its strategic growth initiatives.