A filing made at the Bombay Stock Exchange (BSE) states that Mumbai-based global pharmaceutical major Cipla Limited has signed an agreement to acquire 26% stake on a fully diluted basis in AMP Solar Power Systems Private Limited.

AMP Solar Power Systems is a wholly owned subsidiary of AMP Solar Technology Private Limited and is a special purpose vehicle formed for the purpose of setting up a captive solar power project in Maharashtra.

The SPV would engage in generation and transmission of solar power and other sources of renewable energy, toeing in line with Cipla’s commitment to enhance the proportion of renewable (solar) based power consumption and to comply with the regulatory requirement for captive power consumption under electricity laws, the announcement clarified.

Cipla will acquire and maintain 26% stake on a fully diluted basis in AMP Solar throughout the term of the power purchase agreement (PPA), share purchase, subscription and shareholders agreement, and other transaction documents.

The acquisition cost has been pegged at ₹129 million (~$1.85 million).

After the acquisition, AMP Solar which was incorporated on February 7, 2019, will become an associate of Cipla Limited. The indicative time-period for the share purchase is currently June 12, 2019, while the completion of the acquisition including subscription of equity shares and compulsorily convertible debentures would be done in one or more tranches up to the actual commercial operation date of May 30, 2020, tentatively.

Earlier, it was reported by Mercom that AMP Solar has acquired the remaining 51% stake in Rudra Solar farms, a special purpose vehicle built by another renewable developer Suzlon to execute the 15 MW grid-connected solar photovoltaic project at Achampet in Telangana.  According to a BSE filing, AMP Solar acquired the remaining 51% stake for ₹142.1 million (~$2 million). In December 2016, AMP Solar had acquired a 49% stake in Rudra Solarfarms for a cash consideration of ₹140 million (~$1.97 million).

This article has been corrected to reflect the correct cost of acquisition which is $129 million instead of the previously mentioned $12.9 million