Engineering company, Gensol Engineering, on Wednesday said it has agreed to acquire up to 100 percent shares capital and voting rights in Scorpius Trackers for a total cash consideration of Rs 135 crore.

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Scorpius Trackers, established in 2012, is engaged in the business of designing, developing, marketing and servicing single-axis tracker for solar power generation. The cost of acquisition may change during the process of acquisition, the company said in a statement.

In an exchange filing, Gensol Engineering said, “We wish to inform you that the Company has agreed to acquire upto 100 percent shares capital and voting rights in Scorpius Trackers Private Limited, subject to execution of definitive agreements, Due Diligence and completion of certain identified conditions precedent. In this regard, the Company will sign a binding Term Sheet with Scorpius Trackers Private Limited.”

The company revealed that the acquisition involved a total consideration of Rs 135 crore, which will be paid in three ways. Of 135 crore, Rs 45 crore will be paid as bank transfer, Rs 60 crore will be paid as share swap, and Rs 30 crore will be paid as a capital infusion directly in the target company.

With the acquisition, Gensol Engineering will be able to offer its clients an end-to-end EPC solution that includes innovative solar tracking technology, thus, enabling its customer to reduce their levelled cost of energy, it claimed.

The company also said that it aims to complete the acquisition by June 30, 2023. Gensol Engg secured orders worth Rs 501 crore in February this year.

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(Edited by : Vivek Dubey)