On June 8, Tech Mahindra notified the stock exchange that it had acquired a 26% stake in recently established renewable energy company Huoban Energy 6 Private Ltd. Tech Mahindra said it would pay Rs 1.6 billion for the acquisition in an all-cash deal, adding that the deal is expected to close within 90 days.

The acquisition is under a “group exclusive” scheme, which will enable Tech Mahindra to consume renewable energy generated by Fireboard Energy. Captive group or captive projects are projects set up by developers in which interested consumers hold at least 26% equity, such as Tech Mahindra. The government regulates the renewable energy generated by such projects and controls by stakeholders’ control over consumption.

According to Tech Mahindra, “The acquisition will enable the company to procure 5 MW of solar energy at its plant in Pune, Maharashtra.”

Houban Energy was established in Hyderabad in November 2021 and is currently a 100% subsidiary of the solar company Fourth Partner Energy Pvt Ltd. The regulatory filing states that details such as size and turnover do not apply to a newly established entity.

The IT services firm said the acquisition of a stake in Houban Energy will lead to solar energy procurement at Tech Mahindra’s Pune plant, in line with its strategy to achieve net-zero emissions by 2040.

“Tech Mahindra is a signatory to Business Ambition for 1.5°C, a commitment to increase global temperatures by 1.5°C. Tech Mahindra has adopted a climate action plan that provides the organisation with a route to net zero emissions by 2040. We have rooftop solar power plants installed on all campuses. We also plan projects to own campuses through all of our captive access to renewable energy,” it added.