Varun Beverages Ltd. invests in SPV for captive solar power.

Varun Beverages Limited ("Company") has invested 9.80% of Equity Share Capital (5.68% on fully diluted basis) of Lone Cypress Ventures Private Limited, a special purpose vehicle engaged to supply solar power to consumers in the state of Uttar Pradesh.

Lone Cypress Ventures Private Limited ("SPV") a special purpose vehicle incorporated in 2016 by Sunsource Energy Private Limited ("Sunsource") under the group captive model envisaged under the Electricity Act, 2003 to supply solar power to consumers in the state of Uttar Pradesh.

The company intends to obtain solar power (generation and supply) from SPV for its facilities located in Sandila, Uttar Pradesh and Kosi, Uttar Pradesh. Solar power is environment friendly (green energy) with the added advantage of reduction in the power cost of the respective facilities.

Accordingly, as per the Electricity Act, 2003, the Company, being captive user, is required to make investment in the SPV.

As part of the proposed transaction, the Company, being the captive user, has invested Rs. 3,15,00,000 (31,50,000 equity shares of face value of Rs. 10/- each) in the equity shares of the SPV.

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