Hindustan Zinc has acquired 26% stake in newly-incorporated Serentica Renewables for Rs 350 crore, as part of its endeavour to meet ESG goals.
The completion of the deal is subject to requisite regulatory approvals.
The companies have entered into a long-term renewable power delivery agreement of up to 200 MW, the Vedanta Group firm said in an exchange filing on Saturday. Accordingly, Rs 350 crore cash for 26% stake and per unit electricity tariff will be paid to Serentica Renewables. The remaining equity in Serentica Renewables will be held by affiliated companies. The project will be funded on a 70:30 debt-to-equity basis.
“It is expected that Serentica Renewables India 4 Pvt. Ltd (a special purpose vehicle) will commission its projects within 24 months of signing the power distribution agreement,” Hindustan Zinc said in the filing.
The SPV will help Hindustan Zinc meet its environmental goals by setting up captive power plants in India and providing clean energy to the firm on a long‐term basis.
On Friday, shares of the miner rose 0.30% to Rs 285.35 apiece on the BSE, even as the benchmark S&P BSE Sensex ended the day 0.06% higher at 58,803.33 points.