Tech Mahindra will pay Rs 1.60 crore for a 26% stake in Huoban Energy

On June 8, Tech Mahindra announced that it has bought a 26 percent share in Huoban Energy 6 Private Ltd, a newly founded renewable energy company.

Tech Mahindra said it will pay a total of Rs 1.60 crore in an all-cash agreement for the acquisition, with the transaction expected to be completed in 90 days.

The purchase was conducted under the "group captive" arrangement, which will allow Tech Mahindra to utilise the renewable energy produced by Huoban Energy.

Captive or group captive projects are those that are set up by a developer with a minimum equity contribution of 26% from interested consumers, such as Tech Mahindra in this case, and the renewable energy generated by such projects is consumed by the stakeholder in accordance with government regulations.

"The acquisition would enable the firm to procure 5 MW solar energy for its captive usage at its facilities located in Pune, Maharashtra," according to Tech Mahindra.

Huoban Energy is a 100% subsidiary of solar energy provider Fourth Partner Energy Pvt Ltd, which was founded in November 2021 in Hyderabad. The regulatory filing highlighted that because it is a freshly incorporated organisation, details such as size and turnover are not applicable.

The purchase of a share in Houban Energy, which would result in the procurement of solar energy for Tech Mahindra's Pune site, is in accordance with the IT services company's stated goal of being a net-zero emitter by 2040.

"Tech Mahindra is a signatory to the Business Ambition for 1.5°C, a commitment to limit global warming to 1.5°C. Tech Mahindra has established a climate action strategy that lays out a path for the company to achieve Net Zero emissions by 2040. While we have rooftop solar plants on all of our owned campuses, we also intend to obtain renewable energy through captive projects on all of them "It was also added.