Jhaveri Credits to make solar unit wholly owned for Rs 49,000

Jhaveri Credits and Capital Limited approved a Rs 49,000 cash purchase of the remaining 49% of U R Energy (Solar) Private Limited on November 3, 2026, which will make the solar business wholly owned upon completion despite nil audited turnover in FY24, FY25 and FY26.

What did Jhaveri Credits approve for U R Energy (Solar)?

Jhaveri Credits approved the acquisition of the remaining 49% equity stake in U R Energy (Solar) for total cash consideration of Rs 49,000. The board approved the transaction on the Audit Committee’s recommendation at its November 3, 2026 meeting, which began at 4:30 p.m. and concluded at 6:00 p.m.

U R Energy (Solar) will become a wholly owned subsidiary when the share acquisition is completed. The disclosure states that the consideration is cash rather than a share swap, but does not provide the number of shares being bought, the names of the selling shareholders or a valuation method for the Rs 49,000 price.

U R Energy (Solar) has authorised capital of Rs 1 lakh and paid-up capital of Rs 1 lakh. The announced consideration for the 49% stake is therefore below the target’s paid-up capital, while the filing does not disclose asset values, earnings multiples, liabilities or any other basis used to determine the transaction price.

Why is U R Energy (Solar) a related-party transaction?

U R Energy (Solar) is a related party because it is considered a promoter and promoter-group company, according to Jhaveri Credits. The company said the transaction falls within the related-party definitions in Section 2(76) of the Companies Act, 2013 and Regulation 2(1)(zb) of the Securities and Exchange Board of India Listing Regulations, 2015.

Jhaveri Credits stated that the acquisition is being undertaken on an arm’s-length basis. That is the company’s characterisation of the deal, while the November 3, 2026 announcement does not identify the shareholders transferring the 49% stake or set out the Audit Committee’s valuation review.

U R Energy (Solar) was already included among the group’s two subsidiaries in the limited-review report for the quarter and half year ended September 30, 2026. The other subsidiary named in that report is URE LLC (USA), meaning the transaction concerns full ownership of an existing consolidated entity rather than the purchase of a new external business.

The auditor said the two subsidiaries’ unaudited interim information reflected nil revenue and no profit or loss for both the September 2026 quarter and half year. The auditor also said those interim results were not material to the group and based its conclusion on information approved and furnished by management.

What financial record has U R Energy (Solar) disclosed?

U R Energy (Solar) reported nil audited turnover in each of FY24, FY25 and FY26, so its disclosed annual sales did not change over the three reported years. The acquisition annexure also reports negative net worth of Rs 2.47540 lakh, against authorised and paid-up capital of Rs 1 lakh each.

The filing does not disclose U R Energy (Solar)’s separate profit or loss for FY24 through FY26, or explain the drivers of its negative Rs 2.47540 lakh net worth. It also does not specify whether the entity owns solar assets, has manufacturing equipment, holds power-generation capacity or has customer contracts.

U R Energy (Solar) was incorporated on November 25, 2014 and has its registered office in Ahmedabad, India. Jhaveri Credits identifies India as the country where the target has a presence, with no additional geography disclosed for U R Energy (Solar).

What business is U R Energy (Solar) expected to conduct?

U R Energy (Solar) is disclosed as operating in solar energy, with an object to manufacture solar panels, inverters, cables and other electronic accessories for power-plant installation. Its stated business scope also includes producing solar energy from solar panels and supplying that energy.

Jhaveri Credits said this business is not outside its main line of business. However, the nil turnover reported in FY24, FY25 and FY26 does not provide disclosed sales evidence for panel manufacturing, accessory sales, solar generation or electricity supply during those three financial years.

The board approved the acquisition alongside unaudited consolidated results for the quarter and half year ended September 30, 2026. Consolidated revenue from operations fell to Rs 3.7116 crore in the September 2026 quarter from Rs 39.7415 crore a year earlier, while the period loss narrowed to Rs 48.69 lakh from Rs 62.80 lakh.

For the half year ended September 30, 2026, consolidated revenue from operations was Rs 20.7744 crore, compared with Rs 51.4668 crore in the corresponding 2025 half year. The group recorded a loss of Rs 1.9661 crore for the latest half year, compared with profit of Rs 6.2382 crore in the prior-year period, although the filing does not quantify U R Energy (Solar)’s individual contribution.

What remains undisclosed before U R Energy (Solar) becomes wholly owned?

Jhaveri Credits has not disclosed an indicative completion period for the 49% acquisition. The annexure lists governmental or regulatory approval and the indicative completion period as not applicable, leaving no scheduled closing date in the November 3, 2026 filing.

The announcement also does not state whether U R Energy (Solar) will need fresh funding after the Rs 49,000 share purchase, despite its negative Rs 2.47540 lakh net worth. There is no disclosed manufacturing timetable, solar project pipeline, capacity target, customer agreement or revenue target for the entity.

Full ownership will change U R Energy (Solar)’s legal position within the group once the transfer is completed. Management’s disclosed rationale is that the target’s solar business fits Jhaveri Credits’ main line of business, while the available operating history shows zero turnover across three audited financial years.

Conclusion

Jhaveri Credits has approved a small related-party cash transaction to acquire the final 49% of U R Energy (Solar) for Rs 49,000 and make it wholly owned. The acquisition brings full control of a solar-focused subsidiary that reported nil audited turnover in FY24-FY26 and negative net worth of Rs 2.47540 lakh, against a group that generated Rs 20.7744 crore in half-year revenue to September 2026.

The next point to watch is completion of the share transfer, because the filing provides no timetable or approval milestone. Any later disclosure on solar-panel manufacturing, power generation, customer supply, funding, capacity or revenue targets would address operating matters left unresolved in the November 3 announcement.