VBL will acquire up to 26% of Jager Renewables’ equity share capital through one or more tranches, according to an exchange filing. The company’s board approved the investment at its meeting on October 7.
Solar power for Uttar Pradesh facilities
The investment is aimed at securing solar power for captive consumption at VBL’s facilities in Gorakhpur and Prayagraj, as well as any new facilities the company may establish in Uttar Pradesh.
VBL said using solar power is expected to help reduce electricity costs at these facilities while also providing an environmentally friendly source of energy.
As a captive user, VBL is required to make the investment under the group captive model prescribed under the Electricity Act, 2003.
Jager Renewables yet to start operations
Jager Renewables was incorporated on September 8, 2020, under the group captive model to generate and supply solar power to consumers in Uttar Pradesh, according to the filing.
The company operates in the renewable power generation sector but is yet to commence operations.
The transaction is expected to be completed on or before October 6, 2027. No government or regulatory approvals are required for the investment, according to the filing.
Shares of Varun Beverages ended 0.33% higher at ₹440.70 on the NSE on Wednesday. The stock has gained 8.6% over the past month but remains down 10.4% so far this year.
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