UltraTech Cement Ltd has entered into an Energy Supply Agreement and a Share Subscription and Shareholders Agreement to acquire a 13.99 per cent equity stake in FPEL Services Pvt Ltd, a renewable energy company focused on wind power generation and transmission.
The company will invest INR120.9m (US$1.4m) in the transaction, which is intended to support its green energy requirements, optimise energy costs and comply with captive power consumption regulations.
Separately, UltraTech subsidiary India Cements Ltd has agreed to acquire a 12.48 per cent stake in FPEL Services for INR107.8m.
UltraTech said the acquisition is not a related-party transaction and that neither its promoters nor promoter group entities have any interest in FPEL Services.
The transaction is expected to be completed within 180 days of signing the agreements.
The investment forms part of UltraTech's wider strategy to increase its use of renewable energy and reduce the carbon footprint of its cement operations.
