Ashok Leyland picks 26% stake in Prathama Solarconnect for Rs 19 cr

Hinduja Group's flagship company Ashok Leyland Ltd (ALL) has invested Rs 18.66 crore in Prathama Solarconnect Energy Private Limited, for a 26 per cent stake in the company's paid-up share capital.

Prathama Solarconnect Energy is part of the Hinduja Renew group, and is engaged in solar power generation business. The company has reported a loss of Rs 76.97 lakh in 2019-20.

According to a Crisil report last September, the group is currently developing 75 Mw (about 40 per cent of overall capacity) of group captive solar power plant under PSEPL for Ashok Leyland. 

Therefore, the group remains exposed to stabilisation and implementation related risks for this project. However, its track record of calibrated expansion strategy with a prudent funding mix, and group support aid the business risk profile. Moreover, expansion is backed by strong visibility for evacuation and PPA, said in the group.

Further, the group plans to set up over 75-85 Mw of solar projects over the medium term, and aims to achieve overall one gigawatt of solar capacity in the long run, said Crisil.