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Following the announcement of a hike in its equity shareholdings in Sunbarn Renewables Pvt. Ltd., shares of Mahindra CIE shot up by 4 percent to touch its 52-week high of Rs 344.80 on Monday.

Mahindra CIE, in an exchange filing, informed the bourses that it had subscribed to 2.4 lakh equity shares of Sunbarn, which will constitute a 26.12% of the post-issue capital of the company. Incorporated as a special purpose arm by Cleantech India OA, Sunbarn is involved in solar power generation and supply.

Mahindra CIE has invested Rs 19.20 crore at Rs 80 per share for the latest investment in Sunbarn

The company said that the acquisition of new equity shares was intended to fulfill the eligibility criteria to become Sunbarns' captive consumers.

Cleantech has commissioned solar plants and is supplying captive power to Sunbarn's Forhining and Chakan and Magnetic products division in Bhosari. Sunbarn is setting up an additional captive solar plant with a capacity of 6 MWp for supplying additional captive power to the company's plant at Forgings Chakan.

The allotment of shares for the subscription will be completed by December 23.

Post-acquisition of new shares, Mahindra CIE will become an associate company of Sunbarn.

Shares of Mahindra CIE are trading 2.27 percent higher at Rs 334.

(Edited by : Rukmani Krishna)