Star Cement and its wholly-owned subsidiary Star Cement North East have entered into a group captive power purchase agreement with JSW Green Energy Six. Under this agreement, Star Cement will acquire up to 30 per cent of the paid-up equity shares of JSW Green Energy Six.
Star Cement shares were trading at ₹200.05, up 0.45 points (0.23 per cent) on the BSE and ₹199.19, down 0.15 points (0.08 per cent) on the NSE at 2:20 p.m.
JSW Green Energy Six is engaged in the development, construction, operation and maintenance of renewable energy-based power plants in India. The company is currently in the process of developing a solar and wind hybrid power plant in Maharashtra with a total installed capacity of 47 MW.
The acquisition is aimed at enhancing Star Cement’s sources of renewable power supply. The total investment for the transaction is ₹23.06 crore, with Star Cement contributing ₹15.37 crore and Star Cement North East contributing ₹7.69 crore.
The transaction is expected to be completed within 18 months from the date of signing the power purchase agreements, subject to customary conditions precedent.