Scorpius Trackers is engaged in the business of designing, developing, marketing and servicing single axis tracker for solar power generation. Its turnover for financial year 2021-2022 was Rs 154.29 crore.
This acquisition strengthens Gensol Engineering's position as a leading provider of end-to-end renewable energy solutions and is a part of its strategy to expand its portfolio by spreading wings across new geographies.
With the acquisition of Scorpius Trackers, Gensol, will be able to offer to its clients an end-to-end EPC solution that includes innovative solar tracking technology, thus, enabling its customer to reduce their levelized cost of energy.
The company has acquired 58,779 equity shares of Scorpius constituting 54.38% of shares capital and voting rights in Scorpius on 13 September 2023. The company has issued and allotted 4,05,383 equity shares to the existing shareholders of Scorpius at a price of Rs 1,480.08 per share.
The company will pay Rs 51.04 crore as cash consideration to the existing shareholders of Scorpius. Further, the company will pay Rs 60 crore as consideration other than cash to the existing shareholders of Scorpius which involves issuance and allotment of up to 4,05,400 equity shares of the company to the existing shareholders of Scorpius. Additionally, the firm will infuse Rs 23.95 crore directly in scorpius.
In the first tranche, which has been completed on 13 September 2023, the company has acquired part of the share capital 58,779 equity shares of Scorpius in being proportionate to the share consideration paid by the company to the sellers in lieu thereof.
In the second tranche, the company proposes to acquire the remaining share capital of Scorpius and in lieu thereof, the company will pay the cash consideration to the sellers. The second tranche is proposed to be completed within 45 days from the date of completion of the first tranche.
Gensol Engineering is a company that provides engineering, procurement, and construction (EPC) services for solar power plants. They have a team of over 240 employees and specialize in managing international turnkey projects.
On a consolidated basis, the company's net profit rose 2.71% to Rs 10.24 crore on 41.31% increase in net sales to Rs 144.60 crore in Q1 June 2023 over Q1 June 2022.
The scrip rose 0.35% to Rs 1882.10 on the BSE.