Cipla's subsidiary, Jay Precision Pharmaceuticals, acquires a 26% stake in AMPIN Energy to support a captive solar power project in Maharashtra.
Jay Precision Pharmaceuticals Private Limited, a wholly-owned subsidiary of Cipla Limited, has announced the acquisition of a 26% stake in AMPIN Energy C&I Eighteen Private Limited. This investment will support the development of a captive solar power project in Maharashtra, aligning with Cipla's ongoing commitment to increase its reliance on renewable energy sources.
The deal was formalised through a Share Purchase, Subscription and Shareholders' Agreement (SPSSA) signed on May 20, 2025. The acquisition is aimed at ensuring compliance with Indian electricity laws, particularly the requirements for a 'captive user'.
About the transaction
Jay Precision will acquire the 26% stake on a complete diluted basis for a total cash consideration of up to ₹1.46 crores. The transaction includes:
The subscription is expected to be completed within one month from the signing date or another mutually agreed-upon date.
A renewable-focused SPV
AMPIN Energy C&I Eighteen, incorporated on April 5, 2023, is a special purpose vehicle formed solely for the purpose of developing the solar power project. It is currently a wholly-owned subsidiary of AMPIN C&I Private Limited and has not reported any turnover as of March 31, 2025.
The entity operates within the renewable energy industry, with a focus on the generation and transmission of solar power. Its mandate includes the generation, storage, transmission, and distribution of solar energy across India.
Strategic alignment and regulatory compliance
This acquisition supports Cipla's broader sustainability goals by enhancing the use of clean energy in its operations. It also ensures regulatory compliance to qualify as a captive power user under Indian law.
There are no related-party concerns involved in the transaction, and no approvals from governmental or regulatory bodies are required.
Outlook ahead
By investing in AMPIN Energy C&I Eighteen, Cipla's subsidiary takes a strategic step towards cleaner, more sustainable operations. The move not only fulfils regulatory requirements but also reaffirms Cipla's long-term focus on responsible and environmentally conscious growth.
Cipla's shares were trading at ₹1,476.10 per share, down by 1.04%, as of 11:05 AM on May 20, 2025, on the National Stock Exchange (NSE).
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