Mahindra CIE Automotive rose 2.14% to Rs 333.40 after the company said it acquired another 2,40,000 equity shares of Sunbarn Renewables for sourcing green energy on captive basis.
The company held 8,72,813 equity shares of Sunbarn. The shareholding of the company after the allotment of current subscription will be 11,12,813 equity shares, which will constitute 26.12% of the post issue paid-up capital of Sunbarn. Thus Sunbarn will become associate company of Mahindra CIE. Presently company has invested Rs 1.92 crore at Rs 80 per share. In aggregate the company has invested Rs 8.9 crore at Rs 80 per share.Sunbarn incorporated as a special purpose vehicle by Cleantech India OA (Cleantech), a company incorporated under the laws of Singapore. Sunbarn is engaged in solar power generation and supply. Its turnover as on 31 December 2021 was Rs 5.10 crore. Sunbarn is an associate of the company and accordingly the transaction would fall within related party transaction.
Cleantech have set-up and commissioned captive solar plants and is supplying captive power to Sunbarn's plants of Forgings Chakan and Magnetics products division, Bhosari. Sunbarn is setting up an additional captive solar plant of the capacity of 6MWp for supplying additional captive power to company's plant at Forgings Chakan.
In order to qualify as a captive consumer, the company must hold at least 26% of the total equity capital of the solar generating plant(s). Accordingly, the investment is essentially to qualify as a captive consumer and thereby further optimising the power cost at company's plant at Forgings Chakan.
Mahindra CIE Automotive is engaged in the business of production and sale of automotive components to original equipment manufacturers and other customers (including leading suppliers of components) in India and overseas.
The consolidated net profit rose 3% to Rs 171.37 crore on 30.3% jump in net sales to Rs 2,723.15 crore in Q2 FY23 over Q2 FY22.
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