The investment will be made in two special purpose vehicles (SPVs) — Kadapa Renew Energy Pvt. Ltd. and Kurnool Renew Energy Pvt. Ltd. — through a primary issuance of shares.
Following the transaction, JFE Engineering will acquire a 25% stake in each of the SPVs, while Antony Lara will retain the remaining 75%, the company said in an exchange filing on Wednesday, April 8.
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Currently, both SPVs are wholly owned subsidiaries of Antony Lara. Upon completion of the deal, they will cease to be wholly owned subsidiaries due to the stake dilution.
The partnership is aimed at setting up waste-to-energy projects in Andhra Pradesh, strengthening Antony Waste’s presence in the renewable and sustainable waste management segment.
The company added that JFE will have certain governance rights, including the ability to appoint a nominee director on the boards of the SPVs.
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Shares of Antony Waste Handling Cell Ltd. surged following the announcement on Wednesday and were trading 445.90 as of 12.16 pm. The stock has fallen about 16.5% over the last six months.
