Agreement Termination
IMFA Terminates Renewable Power Agreements with Ampin Energy Utility One
NSE
imfa
BSE
533047
Indian Metals and Ferro Alloys Limited (IMFA) has terminated its Power Purchase Agreement (PPA) and Share Subscription and Shareholders Agreement (SSHA) with Ampin Energy Utility One Private Limited due to delays in project delivery timelines and approvals. The company stated that its investment in the power producer will be refunded as per the termination agreement.
PRICE-SENSITIVE TRIGGER
Event: Termination of renewable energy-related agreements with Ampin Energy Utility One Private Limited.
Type: Agreement Termination
Impact: Neutral
Immediate Effect: The hybrid renewable energy project planned under the agreements has been discontinued, while IMFA’s investment amount is expected to be refunded.
Key Metrics:
- IMFA had invested ₹12.32 crore
- Company subscribed to 1,23,20,000 equity shares
- Equity participation in the power producer stood at 4.36%
- Hybrid renewable power project planned for 40 MW contracted demand
- Solar capacity proposed: 58 MW AC
- Wind capacity proposed: 58 MW
Highlight:
- IMFA’s ₹12.32 crore investment will be refunded following termination of the agreements.
What Happened ?
Indian Metals and Ferro Alloys Limited informed exchanges that it has mutually terminated the Power Purchase Agreement dated May 27, 2025 and the Share Subscription and Shareholders Agreement dated June 12, 2025 entered with Ampin Energy Utility One Private Limited.
The agreements were originally intended for supply of hybrid renewable power to IMFA. However, due to delays in project delivery timelines and approvals, both parties agreed to terminate the arrangements with effect from May 14, 2026.
The company clarified that the investment amount made in the power producer will be refunded according to the terms of the termination agreement.
key highlights
Agreement & Investment Details:
- Agreements terminated:
- Power Purchase Agreement (PPA)
- Share Subscription and Shareholders Agreement (SSHA)
- Counterparty:
- Ampin Energy Utility Private Limited
- Ampin Energy Utility One Private Limited
- Termination became effective from May 14, 2026
- Termination executed through mutual agreement
- IMFA held 4.36% equity stake in the power producer
- Investment refund to be processed as per agreement terms
Future Plans:
- IMFA stated it is already in advanced discussions with another hybrid renewable energy developer
- Company expects to sign fresh binding documents in Q1FY27
Note:
- The company clarified that there are no related-party implications in the transaction.
Risk Analysis
Key Risks:
- Delay in renewable energy sourcing plans
- Possible postponement in green energy integration targets
- Dependency on securing alternate renewable project partners
- Execution risk in future renewable agreements
Worst Case Scenario:
- If replacement renewable agreements are delayed significantly, IMFA may face postponement in cost optimization and sustainability initiatives tied to renewable power sourcing.
Risk Level: Low
Company Commentary
- Agreements were terminated mutually due to project delivery and approval delays
- IMFA confirmed that invested funds will be refunded
- Company stated discussions with another renewable energy developer are already underway
- Binding documents with a new partner are expected in Q1FY27
Official Exchange Filing: Indian Metals and Ferro Alloys Limited