Orient Green Power Company Limited cuts Delta stake to 70%

Orient Green Power Company Limited reduced its holding in Delta Renewable Energy Private Limited to 70% after preferential equity allotments through September 30, 2026, while retaining subsidiary status and recording Rs 13.29 crore of other shareholders’ equity capital as non-controlling interest in consolidated unaudited results.

How did Orient Green Power’s stake in Delta fall to 70%?

Orient Green Power’s stake fell from 100% to 70% because Delta issued equity shares on a preferential basis in multiple tranches to the holding company and other subscribers. Delta had been a wholly owned subsidiary, but the allotments changed its ownership structure while Orient Green Power continued to report Delta as a subsidiary at September 30, 2026.

At March 31, 2026, Orient Green Power held 88.17 lakh Delta equity shares and other subscribers held 37.83 lakh shares. During the half year ended September 30, 2026, Delta allotted 221.92 lakh shares to Orient Green Power in its fourth preferential tranche and 95.11 lakh shares to other subscribers in its fifth tranche.

Orient Green Power received more shares than other subscribers in both the March 31 position and the two reported September-half-year allotments. However, the preferential issues increased outside ownership sufficiently for the parent’s holding to decline from 100% to 70% after all reported tranches.

What does Rs 13.29 crore of non-controlling interest represent?

Rs 13.29 crore represents Delta’s equity share capital contributed by shareholders other than Orient Green Power at September 30, 2026, and is included under non-controlling interest in the group’s consolidated unaudited financial results. Non-controlling interest is the consolidated-accounting classification for ownership in a controlled subsidiary held by investors other than the parent.

Orient Green Power said its consistently applied accounting policy, based on Delta’s business model, provides that Delta’s entire profits or losses will be absorbed by the group. The filing therefore separates the Rs 13.29 crore capital contributed by other shareholders from the stated treatment of Delta’s profits or losses in the consolidated accounts.

The financing cash-flow statement reported Rs 9.46 crore of proceeds from issue of equity shares to non-controlling interests for the half year ended September 30, 2026, compared with Rs 93 lakh in the half year ended September 30, 2025. The year-on-year increase of Rs 8.53 crore coincided with Delta’s preferential allotments.

How is Delta’s revised ownership linked to its solar project?

Delta is the subsidiary through which Orient Green Power developed a solar project, and Delta’s revised capital structure changed the planned balance between parent equity and loans. Orient Green Power revised the maximum equity infusion into Delta to Rs 31.52 crore, from an earlier planned equity infusion of Rs 98.50 crore, with the remaining amount to be provided as loans.

The changed equity-loan arrangement did not alter the stated overall project cost of Rs 143.50 crore. Orient Green Power had increased the solar development scope from 19.8 megawatt alternating current (MW AC) to 25 MW AC, changed the project location and planned multiple contractors and locations before restricting capacity under the rights-issue object to 24.6 MW AC.

Delta commissioned a 7 MW AC solar project in financial year (FY) 2025-26 and entered into an engineering, procurement and construction (EPC) contract for a 17.6 MW AC project. The 17.6 MW AC project was commissioned on September 22, 2026, although incidental activities remained under way at the September 30, 2026 reporting date.

What happened to rights-issue funding earmarked for Delta?

Orient Green Power had Rs 21.44 crore of unspent rights-issue proceeds at September 30, 2026, held in fixed deposits with banks by the company and Delta. The company raised Rs 250 crore through a FY 2024-25 rights issue of 19.23 crore equity shares at Rs 13 each and had used Rs 228.56 crore towards issue objects and expenses by September 30, 2026.

The filing links the Delta solar project to changes approved by the Board of Directors and the Rights Issue Committee to expedite implementation and use of proceeds. The approved changes included the 24.6 MW AC capacity restriction, a revised location and contractor approach, and equity funding into Delta capped at Rs 31.52 crore within the unchanged Rs 143.50 crore project cost.

Orient Green Power said any unspent proceeds earmarked for the solar-project object may be used for general corporate purposes after the 17.6 MW AC project is completed. This potential use remains conditional on completion of the incidental activities and settlement of consideration under the EPC contract.

What does Delta’s financing change mean for consolidated reporting?

Delta remains a subsidiary of Orient Green Power at the reported 70% holding, so its financial position and operations continue to be reflected in consolidated results. The principal reporting change is the recognition of Rs 13.29 crore of other shareholders’ Delta equity under non-controlling interest following the preferential allotments.

Orient Green Power reports one operating segment, generation of power through renewable sources, for the group that includes Delta. Management said the group’s operations are seasonal and that any quarter may not represent annual performance, a qualification relevant to the quarter and half year ended September 30, 2026.

ICRA Limited assigned an ICRA BBB/Stable rating to Delta’s debt facilities during September 2026. The filing does not disclose the amount or individual terms of those facilities, but the rating disclosure followed the September 22, 2026 commissioning of Delta’s 17.6 MW AC project and the revised equity-and-loan funding plan.

Conclusion

Orient Green Power’s preferential-equity restructuring at Delta introduced other shareholders while preserving a 70% holding in the subsidiary. The central consolidated-accounting outcome is Rs 13.29 crore recorded as non-controlling interest, while the solar project’s funding plan moved from Rs 98.50 crore of planned equity infusion to a maximum Rs 31.52 crore equity infusion, with the remaining amount as loans.

The next disclosed matter is completion of incidental activities for Delta’s 17.6 MW AC project and settlement of EPC consideration. Orient Green Power has said any unspent rights-issue proceeds assigned to the project may then be used for general corporate purposes.