Cipla on track with ESG goals; acquires 33% stake in renewable power company

Cipla on track with ESG goals; acquires 33% stake in renewable power company

by 5paisa Research Team Last Updated: Dec 12, 2022 - 01:57 am 43.3k Views
Listen icon

The drug maker acquired 33% of the partnership interest in Clean Max Auriga Power LLP. 

This agreement is in line with the company’s commitment to enhance the share of renewable power sources in its operation and to comply with the regulatory requirement for being a captive user under electricity laws. Captive user means Cipla would be an end-user of the electricity generated from the plant.

Background of Target entity 

Clean Max Auriga Power is engaged in the business of production, supply, and distribution of solar and wind or other renewable energy generation plant. It was incorporated on 18 February 2019 with two people to set up captive wind and solar, renewable power generation plant in Karnataka.

Deal size: Cipla paid Rs 6 crore for the acquisition. Post-acquisition, Clean Max Auriga Power LLP will become an associate of Cipla Limited.

Comments from Top Executives

“ESG is at the centre of focus at Cipla and with this acquisition, we are progressing on the right track of being purposeful by embedding sustainability into our business. It is a testament to our commitment to using cleaner, renewable sources of energy and it fuels our ambition of enabling a greener environment,” said Kedar Upadhye, President and Global CFO of Cipla.

“This acquisition is in line with our steady efforts towards progressing on goals that we have out to achieve in the ESG space. Sustainability is at the core of Cipla and while we have miles to go in this path that we have undertaken to achieve our ESG goals, we are gradually moving towards it through such acquisitions and partnerships,” asserted Geena Malhotra, Global CTO who spearheads Cipla’s ESG agenda.

There is no major movement in the stock price, shares opened with a 0.7% gap up at Rs 902 in the morning but declined after that. At 2.45 PM it was trading at Rs 881, down by 1.6% for the day from the previous close of Rs 895.70.

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Bharat Highways INVIT IPO Anchor Allocation at 45%

About the Bharat Highways Infrastructure Investment Trust INVIT IPO

Sadhav Shipping IPO Closing Subscribed 135.69 times

About the Sadhav Shipping Ltd IPO

Zenith Drugs IPO Lists 39.24% higher, but closes at -5% lower circuit

Strong listing for Zenith Drugs IPO, then lower circuit