Mahindra Renewables to sell 3 solar arms to CLP India

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Mahindra & Mahindra has announced its arm Mahindra Renewables has agreed to sell its entire stake in three subsidiaries to CLP India, a part of Hong Kong-based CLP Group, for around Rs 340 crore.

“Following the sale, Mahindra Renewables’s shareholding in Cleansolar Renewable Energy Pvt Ltd (CREPL), Divine Solren Pvt Ltd (DSPL) and Neo Solren (NSPL) would come down to Nil, and CREPL, DSPL, NSPL will cease to be the subsidiaries of MRPL and consequently of the Company”—said the company statement.

As per the share purchase agreement, CLP will acquire 96,23,000 equity shares of Rs 10 each in CREPL at a price of Rs 113.11 per share, aggregating to Rs 108.85 crore.

Similarly, it will acquire 12,080,000 equity shares of Rs 10 each in DSPL at a price of Rs 104.57 per share, aggregating to Rs 126.32 crore.

CLP will also buy 93,15,000 equity shares of Rs 10 each in NSPL at a price of Rs 112.37 per share aggregating to Rs 104.67 crore, the filing said.

CREPL is a special purpose vehicle formed by the Mahindra group to set up and operate a 30MW solar photovoltaic power plant in Tandur, District Rangareddy South, Telangana. The plant commenced commercial operations in 2016.

DSPL has constructed a 50 MW solar plant in Adilabad district of Telangana. The plant was commissioned in 2017.

NSPL was formed to set up and operate a 42 MW solar photovoltaic power plant at Wadekothapally, Warangal District, Telangana, which is operational from October 2017.

In the fiscal ended March 31, 2019, CREPL had a turnover of Rs 39.15 crore, while DSPL’s and NSPL’s turnover stood at Rs 54.18 crore and Rs 42.68 crore, respectively.

The net worth of CREPL for the year ended March 31, 2019 was Rs. 63.96 crore, while DSPL’s and NSPL’s net worth was Rs 85.78 crore and Rs 72.96 crore, respectively.

The transaction is expected to be completed by May 31, 2020.