Mahindra CIE Automotive hikes investment in Sunbarn
19th Dec 2022

Mahindra CIE Automotive has further subscribed 2,40,000 equity shares of Rs 10 each of Sunbarn Renewables (Sunbarn) which will constitute 26.12% of the post-issue paid-up capital of Sunbarn. Sunbarn is an associate of the Company and accordingly the transaction would fall within related party transaction.

Sunbarn is incorporated as a special purpose vehicle by Cleantech India OA (Cleantech), a company incorporated under the laws of Singapore. Cleantech develops, finances, constructs, owns and operates solar photovoltaic projects.

Cleantech has set-up and commissioned captive solar plants and is supplying captive power to Company’s plants of Forgings Chakan and Magnetics Products Division, Bhosari. Sunbarn is setting up an additional captive solar plant of the capacity of 6MWp for supplying additional captive power to Company’s plant at Forgings Chakan.

In order to qualify as a captive consumer, the Company must hold atleast 26% of the total equity capital of the Solar Generating Plant(s). Accordingly, the investment is essentially to qualify as a captive consumer and thereby further optimising the power cost at Company’s plant at Forgings Chakan.

Mahindra CIE is engaged in the business of production and sale of automotive components to original equipment manufacturers and other customers (including leading suppliers of components) in India and overseas.