Hyderabad based Dr. Reddy's Labs Purchases 26% Stake in O2 Renewable Energy for INR 42.78 Lakh
Dr. Reddy's Laboratories has successfully acquired 26% of the paid-up equity share capital of O2 Renewable Energy IX Private Limited (SPV) in the initial phase.
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Dr. Reddy's Laboratories has successfully acquired 26% of the paid-up equity share capital of O2 Renewable Energy IX Private Limited (SPV) in the initial phase. The Indian pharmaceutical company invested Rs 42.78 lakh in equity share capital and an additional Rs 72.84 lakh in compulsorily convertible debentures. This investment is part of a larger commitment, with Dr. Reddy's planning to invest up to Rs 24 crore in multiple tranches, based on the business requirements of the SPV.
The acquisition aligns with the terms and conditions outlined in the security subscription and shareholders' agreement (SSHA), which Dr. Reddy's had previously entered into for the consumption and supply of renewable energy. The agreement involves TEQ Green Power XI Private Limited and O2 Power SG Pte Ltd. The SPV, O2 Renewable Energy IX Private Limited, focuses on electric power generation from non-conventional sources, particularly solar energy. Post-acquisition, the SPV will be considered a related party of Dr. Reddy's.
The SPV, incorporated under the Companies Act, 2013, on September 20, 2022, has an authorized capital of Rs 35,00,00,000 and a paid-up capital of Rs 1,64,53,650. As of March 31, 2023, its turnover was nil. Dr. Reddy's stated that the objective behind this strategic acquisition is to gain access to renewable power, specifically through solar and wind power plants utilizing inter-state transmission systems (ISTS) under a captive structure.
