Dalmia Cement Bharat to Acquire 41% Stake in Oyster Green Hybrid Five for ₹17.35 Crore

In a decisive move to accelerate its decarbonization roadmap and hedge against long-term tariff volatility, Dalmia Cement (Bharat) Limited (DCBL) signed definitive agreements on April 29, 2026, to acquire a 41% stake in Oyster Green Hybrid Five Private Limited. The transaction, valued at approximately ₹17.35 crore, secures a dedicated renewable energy source for DCBL’s manufacturing operations in Kadapa, Andhra Pradesh. This strategic investment is designed to propel the company toward its RE100 goal by 2030 and its broader commitment to becoming carbon negative by 2040.

Transaction and Equity Structure

The acquisition is structured to integrate DCBL as a primary captive consumer within the project’s ownership framework. The financial and legal specifics of the deal include:

• Equity Stake: 41% shareholding (representing 26% on a fully-diluted basis).
• Investment Amount: Approximately ₹17.35 crore.
• Legal Instruments: Execution of a Share Subscription and Shareholders’ Agreement (SSSHA) and a Power Consumption Agreement (PCA).
• Nature of Entity: Oyster Green Hybrid Five operates as a Special Purpose Vehicle (SPV) of Oyster Renewable Energy Private Limited.

Technical Project Specifications

The hybrid project leverages a combination of wind and solar assets to ensure a stable, dispatchable clean energy supply for industrial use.

Regulatory Strategic Context

This acquisition is particularly significant following the notification of the Electricity (Amendment) Rules, 2026, on March 13, 2026. By acquiring a 41% stake, DCBL is positioning itself to benefit from the new regulatory “UQR (Unitary Qualifying Ratio) displacement” framework.

Under the 2026 Amendment, the aggregate consumption by all captive users is now the primary metric for verifying captive status, significantly reducing the counterparty risks previously associated with group captive models. Most notably for DCBL, the new rules state that a captive user holding a stake of 26% or above is exempt from the proportionate consumption cap entirely. This provides DCBL with a robust structural lever, allowing it to maximize its green energy intake while ensuring immunity from the cross-subsidy and additional surcharges typically levied on non-captive consumers.

Corporate Strategy Alignment

The investment represents a “doubling down” on Dalmia Bharat’s sustainability milestones amidst a shifting energy landscape. The acquisition directly supports:

• RE100 by 2030: Transitioning to 100% renewable electricity across all operations.
• Carbon Negative by 2040: Leading the heavy industry sector in deep decarbonization.

Entity Background and Timeline

Oyster Green Hybrid Five Private Limited was incorporated on June 5, 2025, in Mumbai, Maharashtra, specifically to develop captive hybrid projects. Its parent company, Oyster Renewable Energy Private Limited, maintains a substantial footprint in the sector with a total wind-solar hybrid portfolio of 315.6 MW across Madhya Pradesh and Gujarat.

The acquisition is expected to close within four months, subject to customary conditions precedent. DCBL has confirmed that this is not a related party transaction; the promoter group and group companies hold no prior interest in the target entity.