Cipla, which is popularly known as a drug major, has signed a pact to acquire 32.49 per cent stake in solar power firm AMP Energy Green Eleven Pvt Ltd in cash consideration of about Rs 7.50 crore on a fully diluted basis.

AMP Energy Green Eleven, a wholly-owned subsidiary of AMP Energy C&I Pvt Ltd, is a Special Purpose Vehicle (SPV) formed for the purpose of setting up a captive solar power project in Maharashtra.

The Mumbai-based company has entered into a shareholder’s agreement along with the power purchase agreement to acquire up to 32.49 per cent stake on a fully diluted basis in AMP Energy Green Eleven.

The step came in line with the company’s commitment to enhance the share of renewable power sources in its operation. This will also help to comply with the regulatory requirements for being a captive user under Indian electricity laws.

AMP Energy Green Eleven is engaged in the business of generating and supplying electrical power generated using solar energy. Post-acquisition, it will become an associate of Cipla Ltd.

Meanwhile, the subscription to equity shares and compulsorily convertible debentures are expected to be completed within 2 months from the date of signing of the transaction.