Blue Circle Services Ltd, a Mumbai-based public-listed financial services company, has acquired renewable energy firm Enelek Power for an undisclosed sum, the company has disclosed in a statement to the Bombay stock Exchange. Blue Circle will invest Rs 20 crore ($4 million) in Enelek for the expansion of its product line.
Co-founded by Nachiket Gandhi (who is also the CEO), Enelek Power designs and manufactures solar thermal heating and power systems.
“We think now is the right time to join hands with a public-listed company like Blue Circle because we believe that becoming a subsidiary of an already listed company will help us unlock the huge business potential and the scale that Enelek has always desired to achieve,” commented Gandhi.
According to Chandrakala Purohit, CEO of Blue Circle, the company has been looking to diversify its business interests and has looked at over two dozen potential companies to invest in. “This acquisition will help BSCL to foray into the infrastructure space. We believe that in the coming years, solar and alternate energy will be the game changer for the infrastructure industry in India,” he said.
Blue Circle is a small financial services firm in which Sanjay Singal (of Baring Private Equity Asia-backed Bhushan Power & Steel) and family is one of the minority shareholders. The parentage of the company could not be immediately ascertained, though. Shareholding disclosures show its promoter group as a foreign entity holding just over 3 per cent stake as of September 30, 2011.
Blue Circle is also in the process of acquiring an undisclosed systems integration company within the solar power space and is planning to close the deal within this financial year, the statement added.
Blue Circle Services scrip last traded at Rs 75.65 a share, marginally down on the BSE on Tuesday.