SWELECT Energy Systems Limited has decided to invest up to ₹21 crore in the equity share capital of its subsidiary, ESG Green Energy Private Limited, to set up a 16 MW solar power plant under the Group Captive scheme. The investment has been approved by the company’s board and falls under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with the SEBI circular issued on July 13, 2023.
ESG Green Energy Private Limited is a newly incorporated company with a paid-up equity share capital of ₹1 lakh and has yet to commence commercial operations. The company operates in the solar power sector and was established to develop clean energy solutions. Since it is a wholly owned subsidiary of SWELECT Energy Systems Limited, this investment is considered a related party transaction under SEBI regulations. Currently, SWELECT holds 100% equity in ESG Green Energy, but after the investment, its stake will be 73.98% as per the Group Captive scheme guidelines. The transaction is conducted on an arm’s length basis, ensuring transparency and regulatory compliance.
The purpose of this investment is to develop a solar power plant under the Group Captive scheme, which allows corporate and industrial consumers to participate in renewable energy generation while meeting their power needs sustainably. This scheme provides benefits such as reduced energy costs and a reliable power supply while contributing to clean energy initiatives.
No government or regulatory approvals are required for the investment, and the timeline for completion will be as per the agreed terms of the offer. The investment will be made in cash, with each equity share valued at ₹10 per share.
ESG Green Energy Private Limited was incorporated on June 11, 2024, in India. Since it is a newly formed company, there is no financial history for the past three years. The 16 MW solar power plant to be developed under this initiative will contribute to India’s renewable energy capacity and support sustainability efforts in the energy sector.
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