Fujiyama Power Systems Limited, a listed renewable energy and power electronics company, has entered into a Compulsorily Convertible Debenture (CCD) Subscription Agreement with its associate company Zayo Energy Private Limited (ZEPL), committing an investment of ₹5.01 crore.
Under the agreement, Fujiyama Power Systems will subscribe to 833 CCDs of ZEPL at ₹60,093 per debenture, aggregating to ₹5,00,57,469. The transaction was approved by the company’s Board of Directors and is expected to be completed within 60 days from the date of approval.
Zayo Energy operates in the solar manufacturing ecosystem, with a focus on PV ribbon wire, PV busbars, copper wires, solder bars and solder wires, as well as aluminium frames used in solar panels. Its manufacturing portfolio also includes products such as EVA sheets, junction boxes and backsheets.
The investment is aimed at enabling backward integration of Fujiyama’s solar manufacturing value chain, while creating operational and strategic synergies across the businesses. According to the company’s regulatory disclosure, ZEPL operates in the same line of business as Fujiyama Power Systems.
Fujiyama Power Systems currently holds 50% of Zayo Energy. The company said there will be no immediate change in its shareholding structure following the subscription to the CCDs; however, the shareholding is expected to change upon conversion of the CCDs into equity shares, in accordance with the agreed terms.
Zayo Energy was incorporated on May 25, 2022 and has its registered office in West Delhi. The company has a paid-up share capital of ₹1 lakh and reported nil turnover for FY2025-26, as it has not yet commenced commercial operations.
The transaction is classified as a related-party transaction since ZEPL is an associate company. The company stated that the investment will be undertaken on an arm’s-length basis, based on a valuation of ZEPL’s equity shares obtained from an IBBI-registered valuer.
The investment comes as Fujiyama continues to build capabilities across the renewable energy and solar manufacturing ecosystem. The proposed integration of solar component manufacturing capabilities is expected to strengthen the company’s supply chain and provide greater control over key inputs used in solar panel manufacturing.