Indian Pharma Giant Invests In Solar

Pharmaceutical Firm Cipla Limited To Acquire 26% Stake In AMPSolar Power Systems For INR 129 Million To Make It An Associate Company
06:07 AM (Beijing Time) - 28. May 2019
cipla

The acquisition of AMPSolar is in line with Cipla’s commitment to enhance the proportion of renewable based power consumption and to comply with regulatory requirement for captive power consumption under electricity laws, says Cipla. (Photo Credit: Cipla Inc.)

Key Takeaways

  • Cipla is investing in solar power with the proposed acquisition of AMPSolar Power Systems Private Limited
  • It is investing INR 129 million ($1.86 million) to acquire 26% stake on a fully diluted basis in the special purpose vehicle of AMPSolar Technology Private Limited
  • Incorporated on February 7, 2019, the project company is to set up captive solar power project in Maharashtra

Indian pharmaceutical firm Cipla Ltd is investing INR 129 million ($1.86 million) to acquire a 26% stake on a fully diluted basis in AMPSolar Power Systems Private Limited which is a special purpose vehicle of AMPSolar Technology Private Limited.

The project company was incorporated on February 7, 2019 in India to set up a captive solar power project in the state of Maharashtra. It will also be involved in other sources of renewable energy and developing solar based infrastructure projects.

In a Bombay Stock Exchange (BSE) filing Cipla stated the acquisition in AMPSolar is ‘in line with the company’s commitment to enhance the proportion of renewable (solar) based power consumption and to comply with regulatory requirement for captive power consumption under electricity laws’.

As per the agreement signed, post the acquisition by Cipla AMPSolar will become an associate of Cipla Limited. Indicative time-period for completion of the acquisition is June 12, 2019.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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