Mahindra CIE Automotive to acquire 27% stake in Strongsun Solar

To qualify as captive consumer and optimise power costs

Mahindra CIE Automotive has invested Rs 2.42 crore towards subscription of 3,03,250 equity shares of Rs 10 each of Strongsun Solar (Strongsun) which will constitute 27.35% of the post-issue paid-up capital of Strongsun.

Strongsun is engaged in setting up of captive power generation projects and development of renewable energy assets in India.

Strongsun is setting up two captive generating plants of the capacity of 7 MWp and 3 MWp to supply captive solar power from these plants to Company's factory of Foundry Division at Urse (7 MWp) and Magnetics Products Division at Bhosari (3 MWp) respectively.

In order to qualify as a captive consumer, the Company must hold atleast 26% of the total equity capital of the Power Generating Plant(s).

Accordingly, the investment is essentially to qualify as a captive consumer and thereby optimizing the power cost at the plants.

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