Hindustan Zinc to invest Rs 350 crore for 26% stake in Serentica Renewables

The company will invest Rs 350 crore for a 26 per cent stake in the special purpose vehicle (SPV) that was created on February 18 for the implementation of RE power projects, catering to the long-term power requirements of Hindustan Zinc under PDA.

A total of 26 per cent of equity will be held by Hindustan Zinc in the Serentica Renewables while the remaining equity will be held by affiliated companies. The project will be funded on a 70:30 debt to equity basis, the company said in a BSE filing.

“The equity infusion will be at par as per Investment Agreement and the tariff rate agreed has been independently benchmarked by a third party with reference to prevailing market tariff for RE power and a cost-plus model prescribed by the Central Electricity Regulatory Commission,” the company said.

Hindustan Zinc said the company intends to secure RE under a group captive power set-up and that Serentica Renewables India 4 Private Limited is created to deliver power over a long-term period to the company.

The SPV will create captive power projects in different parts of India as per location suitability and provide renewable power to the company on a long-term basis.

“It is expected that Serentica Renewables India 4 Private Limited will commission its projects within 24 months of signing the PDA,” Hindustan Zinc said, adding all requisite approvals as may be applicable will be

sought.

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