 "Green Infra acquires majority stake in TVS energy")
Through this acquisition, Green Infra has added to its portfolio 59.75 Mw of windfarms across Tamil Nadu and Maharashtra with a commitment to continue to supply power to the TVS Group. Around 35 MW of production capacity is in Tamil Nadu while the rest is situated in Maharashtra.
Green Infra's operating capacity has increased to 377 MW with this acquistion and the company is on track to reach 500 Mw by March 2014.
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A TVS Motor announcement with the Bombay Stock Exchange said, "...the Company has dis-invested 7,35,00,000 equity shares of TVS Energy Limited, a subsidiary company (TVS Energy) constituting 90.46% of share capital of TVS Energy to Green Infra Limited, New Delhi."
Consequently, TVS Energy and its subsidiaries - TVS Wind Power Ltd and TVS Wind Energy Ltd, cease to be subsidiaries of the company with effect from August 16, 2013, it added.
A senior company official from TVS Group said that the company, along with Sundaram Clayton, would hold the rest of the shares. TVS Motor was holding around 95% of the total shares before the dilution. Retaining the minority stake would help the company to be eligible for captive power consumption, he added.
However the company official refused to reveal the value of the deal.
“We are delighted to partner with TVS Group and to become the provider of clean, green energy to the group. We remain extremely bullish on the future of renewable energy in the country and are aggressively investing in expanding our footprint", said Shiv Nimbargi, MD and CEO of Green Infra.
As reported earlier, Venu Srinivasan, chairman and managing director, TVS Motor told Business Standard that "we have decided to sell and not to be in the business as it is capital intensive".
In the financial year 2012-13, TVS Energy posted revenue of Rs 43.62 crore and a net profit of Rs 4.50 crore.