Tech Mahindra on June 8 informed the stock exchanges that it has acquired a 26 percent stake in Huoban Energy 6 Private Ltd, a recently incorporated renewable energy firm.
Tech Mahindra said it will pay a total sum of Rs 1.60 crore for the acquisition in an all-cash deal, adding that the transaction is estimated to be completed within 90 days.
The acquisition has been made under the "group captive" programme, which will allow Tech Mahindra to consume the renewable energy that will be generated by Huoban Energy.
Captive or group captive projects are projects set up by a developer with a minimum equity contribution of 26 percent from interested consumers, such as Tech Mahindra in this case, and the renewable energy generated from such projects is consumed by the stakeholder as per the government norms.
According to Tech Mahindra, "the acquisition would enable the company to procure 5 MW solar energy for its captive consumption at its facilities located in Pune, Maharashtra".
Also Read | Tech Mahindra commits to 22% reduction in greenhouse gas emissions by 2030
Huoban Energy, set up in November 2021 in Hyderabad, is presently a 100 percent subsidiary of solar energy firm Fourth Partner Energy Pvt Ltd. Being a newly incorporated entity, the details such as size and turnover are not applicable, the regulatory filing noted.
The acquisition of a stake in Houban Energy, which will lead to the procurement of solar energy for Tech Mahindra's Pune facility, is in line with the strategy to become a net-zero emitter by 2040, the IT services company claimed.
"Tech Mahindra is signatory to Business Ambition for 1.5°C that commits to contain the rise in global temperature by 1.5°C. Tech Mahindra has adopted a climate action plan that provides a roadmap for the organisation to become Net Zero before 2040. While we have installed rooftop solar plants at all our owned campuses, we also plan to procure renewable energy through captive projects at all our owned campuses," it added.
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