CIE Automotive India Ltd has announced plans to acquire up to 27% equity in Ijya Renewables India Project Pvt Ltd, investing Rs 25.54 million to set up captive solar power plants with a total capacity of 7.5 MWp. Initially, CIE Automotive’s investment will give it a 49% stake in IjyaRenewables’ paid-up equity share capital. However, after the issuance of quasi-equity instruments to the promoter shareholders of Ijya Renewables, CIE Automotive’s stake will be adjusted to 27%.
This strategic move enables CIE Automotive to meet the regulatory requirement of holding a minimum 26% equity in a power generating entity, allowing it to optimize power costs as a captive consumer. The investment will provide CIE Automotive with access to clean energy from Ijya Renewables’ solar power facilities.
Once the transaction is completed, Ijya Renewables will be classified as an associate company of CIE Automotive India. The deal is expected to close within four months. Ijya Renewables is known for its expertise in developing and managing renewable energy projects.
In recent financial updates, CIE Automotive India reported a consolidated net profit of Rs 2.17 billion for the June quarter, with revenue reaching Rs 22.93 billion. The company’s shares closed at Rs 586.50 on the National Stock Exchange, reflecting a 0.39% increase.
CIE Automotive India, a subsidiary of the Spanish multinational CIE Automotive, is a leading player in the Indian automotive components sector. The company specializes in manufacturing and supplying a wide range of high-quality components such as forgings, castings, and machining parts for two-wheelers, passenger cars, and commercial vehicles.
With a strong presence across India, CIE Automotive India is known for its focus on innovation, sustainability, and efficiency in production processes. Leveraging both global expertise and local insights, the company has built a robust client base, including several major automobile manufacturers. Its commitment to excellence in product quality and customer satisfaction has positioned CIE Automotive India as a key contributor to the country’s growing automotive industry.
