Phoenix Mills Amends Renewable Energy Investment Agreement to Secure Captive Solar Power Access
The Phoenix Mills Limited has informed the stock exchanges that it, along with its wholly owned subsidiary Offbeat Developers Private Limited, has executed an amendment to the Security Subscription and Shareholders’ Agreement (SSA) with JSW Neo Energy Limited and O2 Renewable Energy XXVIII Private Limited.
The amendment revises the terms for subscribing to equity shares and Series B Compulsorily Convertible Debentures (CCDs) of O2 Renewable Energy XXVIII following a reduction in the overall project cost.
Key Transaction Details
- Target Company: O2 Renewable Energy XXVIII Private Limited
- Sector: Solar power generation
- Investment Instruments: Equity Shares and Series B Compulsorily Convertible Debentures (CCDs)
- Minimum Equity Holding: 26%
- Expected Completion: Within 30 business days from the execution of the amended SSA
The revised agreement aligns the investment structure with the updated project economics while preserving the strategic objectives of the transaction.
Strategic Focus on Captive Renewable Power
The investment is designed to enable The Phoenix Mills and Offbeat Developers to qualify as captive users under the Electricity Act, 2003 and the Electricity Rules, 2005.
By holding a minimum 26% equity stake in the solar power project, the companies will be eligible to procure electricity generated by the captive solar plant for their own consumption. This arrangement is expected to provide several long-term benefits, including:
- Access to reliable renewable energy for commercial and retail developments.
- Reduction in long-term electricity procurement costs.
- Lower dependence on conventional power sources.
- Progress toward the company’s environmental and sustainability commitments.
- Improved energy efficiency across its real estate portfolio.
The captive power model is expected to support Phoenix Mills’ strategy of integrating clean energy into its operations while enhancing cost efficiency.
Transaction Structure
The company clarified that:
- The amended agreement is not a related-party transaction.
- Neither the promoters nor promoter group entities have any existing interest in O2 Renewable Energy XXVIII Private Limited.
- The transaction will be completed subject to the terms and conditions outlined in the amended Security Subscription and Shareholders’ Agreement.