Dr Reddy’s Ventures into Renewable Energy with O2 Power SPV Acquisition

According to the reports in the media, Dr Reddy’s, a multinational pharmaceutical company, announced on November 10, Friday its acquisition of securities in O2 Renewable Energy IX Private (SPV). The company disclosed in an exchange filing that it has acquired 26 per cent of the paid-up equity share capital of the SPV in the first tranche. Dr Reddy invested Rs 42.78 lakh, equivalent to 26 per cent of the equity share capital, and an additional Rs 72.84 lakh in compulsorily convertible debentures.

The pharmaceutical giant plans to invest up to Rs 24 crore through equity and compulsory convertible debentures in multiple tranches, aligning with the business requirements of the SPV. This acquisition is in accordance with the terms and conditions outlined in the security subscription and shareholders’ agreement (SSHA). The agreement involves the consumption and supply of renewable energy with TEQ Green Power XI Private Limited and O2 Power SG Pte.

O2 Renewable Energy IX Private focuses on electric power generation using non-conventional sources.

Post-acquisition, the SPV will be considered a related party of Dr Reddy’s. The pharmaceutical company highlighted that the objective behind this strategic move is to gain access to renewable power, particularly through solar and wind power plants operating under an inter-state transmission system (ISTS) within a captive structure.