Phoenix Mills, a leading retail mall developer and operator in India, has announced a significant move in the renewable energy sector through its subsidiary, Pallazzio Hotels & Leisure Limited. Pallazzio Hotels has successfully acquired a 45% stake in O2 Renewable Energy XXX Private Limited (O2 Renewable XXX), marking a strategic entry into the green energy space.
This move aligns with the growing trend of corporations investing in renewable energy sources. The primary objective of this acquisition, as stated in the company's disclosure, is to purchase renewable energy (electricity) generated from O2 Renewable XXX's captive generating plant.
The acquisition was completed through a combination of equity shares and compulsory convertible debentures (CCDs). According to the company's filing with the stock exchanges:
Pallazzio Hotels subscribed to 4,73,000 equity shares of O2 Renewable XXX, each with a face value of Rs. 10. Additionally, 42,570 Series B Compulsory Convertible Debentures (CCDs) were allotted to Pallazzio, each with a face value of Rs. 1,000.
The allotment took place on August 29, following the execution of a Security Subscription and Shareholders' Agreement (SSSA) between Pallazzio Hotels, JSW Neo Energy Limited, and O2 Renewable XXX on July 9.
In line with regulatory requirements, Phoenix Mills has promptly disclosed this material development to the stock exchanges. The company has also made the information available on its website, ensuring transparency for its stakeholders.
This strategic investment positions Phoenix Mills and its subsidiary, Pallazzio Hotels, to potentially benefit from the growing renewable energy sector in India. It also demonstrates the company's commitment to sustainable practices and green energy adoption.
As the renewable energy landscape continues to evolve, it will be interesting to observe how this acquisition impacts Phoenix Mills' operations and sustainability initiatives in the coming years.
