KEI acquires 26% stake in Solarcraft for ₹5.90 crore

KEI Industries Limited has entered into a Share Subscription and Shareholders’ Agreement (SSSA) and a Solar Power Purchase Agreement (SPPA) on May 20, 2026. The company will subscribe to and acquire 26% of the securities, comprising equity share capital and compulsory convertible debentures, of Solarcraft Power India 24 Private Limited. This strategic investment amounts to ₹5.90 crore and will be executed in one or more tranches.

Strategic Objectives

The primary objective of this acquisition is to enhance the company's source of renewable power supply. By sourcing solar power as a captive consumer, KEI Industries aims to achieve its commitment towards renewable energy. The solar power project will have a capacity of up to 11.25 MW and is located in the State of Rajasthan.

Transaction Details

The transaction is structured as a cash consideration and is not classified as a related party transaction. The promoter and promoter group companies have no interest in the proposed acquisition, which is being conducted at arm's length. Solarcraft Power India 24 Private Limited operates in the Renewable Power Generation industry and serves as a Special Purpose Vehicle for setting up the solar power project on a captive basis.

Target Entity Profile

Solarcraft Power India 24 Private Limited was incorporated on June 6, 2023. The entity is a Special Purpose Vehicle registered in Gurgaon, Haryana. The target entity has reported zero turnover for the financial years 2024, 2025, and 2026.

Particulars FY 2024 FY 2025 FY 2026 Turnover 0 0 0

Timeline and Approvals

The acquisition is subject to customary conditions precedent and is expected to be completed within 90 days. No specific governmental or regulatory approvals are required for this transaction. The company has informed the stock exchanges regarding this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

KEI Industries has informed the stock exchanges that the Income Tax Department has concluded its Search and Seizure operations at the company's registered office, manufacturing plants, and other related locations, as well as the residence of the promoter and a few executives of the company. The operations, which commenced on May 7, 2026, were concluded by the late night of May 12, 2026. The disclosure was made through a formal intimation filed under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, addressed to both BSE Limited and the National Stock Exchange of India. The filing was signed by Kishore Kunal, Sr. VP (Corporate Finance) & Company Secretary.

Conclusion of Search and Seizure Operations

In its regulatory filing dated May 13, 2026, KEI Industries confirmed that the Income Tax Department officials concluded their Search and Seizure operations spanning six days. The company stated that it fully cooperated with the IT Department officials throughout the proceedings and responded to all clarifications and details sought by them. KEI Industries has also stated that it will promptly keep the exchanges informed of the outcome from the Search and Seizure operations upon receipt of any direction or order from the Income Tax Department.

The following key details have been disclosed in the official filing:

Parameter: Details Conducting Authority: Income Tax Department Nature of Action: Search and Seizure under the Income Tax Act, 2025 Date of Commencement: May 7, 2026 Date of Conclusion: Late night, May 12, 2026 Locations Covered: Registered Office, Manufacturing Plants, Other Locations, Promoter Residence, and Residence of Few Executives Registered Office: D-90, Okhla Industrial Area, Phase-1, New Delhi - 110020 Financial Impact: Not quantifiable in monetary terms at this point of time Disclosure Regulation: Regulation 30, SEBI (LODR) Regulations, 2015 Signatory: Kishore Kunal, Sr. VP (Corporate Finance) & Company Secretary

SEBI Disclosure Requirements

As required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company provided the following details regarding the Search and Seizure action:

Sr. No. Particulars: Details i. Name of the Authority Income Tax Department ii. Nature of Action Search and Seizure under the Income Tax Act, 2025 iii. Period of Action Commenced May 7, 2026; concluded late night May 12, 2026 iv. Violation/Contravention Details All details and documents asked by the Income Tax Department during the proceedings have been provided v. Financial Impact Not quantifiable in monetary terms at this point of time

Locations and Operations

KEI Industries operates manufacturing facilities and offices across multiple locations in India. The company's works include plants at Bhiwadi and Chopanki in Rajasthan, and Silvassa in the Union Territory of Dadra & Nagar Haveli and Daman & Diu. The company also maintains branch and regional offices in Delhi, Chennai, Kolkata, and Mumbai. The Income Tax Department's Search and Seizure operations covered the registered office, plants, and other related locations, and also extended to the residence of the promoter and a few executives of the company.

Company Background

KEI Industries is a prominent player in the Indian cables and wires industry, headquartered at Okhla Industrial Area, New Delhi. The company has reaffirmed its commitment to transparency and cooperation with the due process of law. KEI Industries has stated it will update the stock exchanges promptly upon receiving any direction or order from the Income Tax Department following the conclusion of the Search and Seizure operations.

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