CEAT To Invest In Greenzest Solar Pvt Ltd
CEAT Ltd has now signed the Share Subscription and Shareholders' Agreement ("SSHA") with Greenzest Solar Private Limited (Greenzest) and Cleantech India OA Pte. Ltd. (Cleantech), for subscribing to at least 26% of total equity share capital of Greenzest, for a value note exceeding Rs. 5 Crores.
Greenzest Solar Private Limited ("Greenzest"), is promoted as a special purpose vehicle, solely to undertake in the business of construction, operation and maintenance of the Captive Generating Plant and to supply, on captive basis, the power generated from the Captive Generating Plant to the Company.
The Company proposes to make investment of amount up to Rs. 5 Crores (Rupees Five Crores only) in one or more tranches, in accordance with the terms and Share Subscription and Shareholders Agreement ("SSHA").
The Company has entered into a Power Purchase Agreement with Greenzest, who is in the business of owning, operating and maintenance of the Captive Generating Plant and supply of electricity. In line with the statutory requirements to avail such power / electricity for captive usage, the Company is required to subscribe to the equity share capital of Greenzest.