Commercial vehicle maker Force Motors Ltd on Tuesday (December 12) said it has acquired a 12.21% stake in TP Surya Ltd for ₹2.68 crore.
The strategic move, approved by the board of directors in a meeting held on December 12, 2023, marks Force Motors' entry into the renewable energy sector.
TP Surya, a wholly-owned subsidiary of Tata Power Renewable Energy Ltd, is a special purpose vehicle (SPV) focused on establishing ground-mounted solar photovoltaic power projects in Maharashtra.
The acquisition is in line with Force Motors' vision to contribute to green energy initiatives.
The procurement of shares in TP Surya is specifically tied to the solar power generated from a new solar plant that TP Surya is poised to establish. This strategic collaboration reinforces Force Motors' commitment to sustainable practices and aligns with the company's efforts to diversify its portfolio.
Through this acquisition, Force Motors joins hands with Tata Power Renewable Energy, leveraging the Maharashtra Group Captive arrangement to advance the development of green energy solutions.
The completion of the acquisition is anticipated before March 31, 2024, contingent upon meeting closing conditions. As TP Surya is still in the initial stages of operationalisation, the collaboration holds promise for Force Motors to actively contribute to the burgeoning green energy landscape in Maharashtra and beyond.
Shares of Force Motors Ltd ended at ₹3,683.80, down by ₹107.75, or 2.84%, on the BSE.
