UltraTech Cement: UltraTech Cement has announced the acquisition of a 26.20% stake in Sunsure Solarpark 38. This is aimed at meeting the green energy needs for its operations.

UltraTech acquires stake in Sunsure Solarpark.

UltraTech Cement: UltraTech Cement Ltd has announced the acquisition of a 26.20% stake in Sunsure Solarpark Thirty Eight Pvt Ltd as part of its efforts to meet the green energy requirements for its operations

According to an exchange filing after market hours on Friday, UltraTech Cement has entered into an energy supply agreement and a share subscription and shareholders' agreement to acquire a 26.20% equity stake in Sunsure Solarpark Thirty Eight. The transaction is for ₹67.2 million (approximately $1.6 billion) and will be paid entirely in cash.

Why were Sunsure shares bought?

In an exchange filing, UltraTech stated that its objective is to meet its green energy needs, reduce energy costs, and ensure compliance with regulatory requirements for captive power consumption under electricity laws. The company requires significant power consumption to operate its cement factories. Therefore, using cheaper, cleaner electricity generated from sunlight or solar energy instead of coal-fired power is a viable option. This will not only reduce electricity bills but also reduce pollution.

Where will the investment be made?

Sunsure is a renewable energy company that generates electricity from solar, wind, or hybrid plants for large factories. To deliver this electricity directly to the factories, the company enters into agreements with companies like UltraTech. Under this new deal with UltraTech, the company has been tasked with developing a solar energy project in Dhule, Maharashtra, with a capacity of 21 MWp DC/14 MW AC. According to exchange filing details, UltraTech expects the acquisition to be finalized within 120 days of completing the core agreements. This development will keep UltraTech shares in focus on Monday.