Zodiac Energy Limited has acquired 98% ownership in eight Limited Liability Partnerships, Gopala, Narayana, Maatangi, Krishnapriya, Narayani, Sumitra, Ganesh, and Lakshmi Solar Projects LLP, all engaged in solar power plant development and electricity generation. Each LLP has a capital contribution of Rs. 20,000, and Zodiac Energy’s acquisition cost was Rs. 19,600 per LLP, valuing each entity at approximately Rs. 20,000. Notably, all eight LLPs, incorporated between December 2020 and January 2021, have reported zero turnover for the past three fiscal years. The acquisition, considered a related party transaction, was conducted in compliance with applicable laws and required no governmental approvals, and the LLPs are now subsidiaries of Zodiac Energy. The lack of business activity over the three-year period raises questions regarding the strategic rationale and valuation of the acquisition.
