Lloyds Metals and Energy has entered into two power purchase agreements (PPAs) with Hinduja Renewables to procure captive solar power. The first PPA covers 10.7 MW of solar power, while the second PPA covers 50 MW of solar power.
Additionally, a share subscription and shareholders’ agreement was signed between Lloyds Metals and Energy, Hinduja Renewables Energy, and HR Godavari. HR Godavari is a special purpose vehicle that has been jointly incorporated by both the companies. As a part of the shareholder agreement, Lloyds will subscribe to at least 26 per cent of the total paid-up equity share capital of HR Godavari. The subscribed equity shares will be fully paid up with a face value of Rs 10 each. This equity subscription is intended to comply with the electricity rules applicable to captive power projects.
Furthermore, the agreement also grants Lloyds pre-emptive rights to maintain its minimum shareholding in the event of future share issuances. Moreover, Lloyds will also have affirmative voting rights on critical matters such as alterations to charter documents, changes to the capital structure, mergers and acquisitions, reorganisation, liquidation and winding-up proceedings, legal status changes, amendments that may affect the captive status of the project, or any decisions related to abandonment of HR Godavari’s power supply business.
