Thermax Limited, a leading energy and environment solutions provider, has infused ₹115 crore into its wholly-owned subsidiary First Energy Private Limited (FEPL) to fund upcoming renewable energy projects. The capital infusion, announced on September 9, 2025, will further flow into FEPL’s step-down subsidiary, First Energy 10 Private Limited (FE10), established as a special purpose vehicle for green energy initiatives.
Equity Infusion Details
The investment was structured through the allotment of 11.5 crore equity shares of ₹10 each in FEPL, mirrored by a similar equity issuance from FE10 to FEPL. The entire transaction was completed via cash consideration, with no change in shareholding structure or control.
Following the infusion:
- FEPL’s paid-up equity share capital now stands at ₹646.31 crore.
- FE10’s paid-up equity share capital stands at ₹135 crore.
Both entities are related parties, but Thermax clarified that neither promoters nor group companies hold any direct interest in them. The transaction was executed on an arm’s length basis, requiring no regulatory or governmental approvals.
Business Focus of FEPL and FE10
FEPL, incorporated in 2008, plays a pivotal role in Thermax’s renewable energy portfolio, offering solar, wind, wind-solar hybrid, and storage solutions tailored for the commercial and industrial segments. The subsidiary has shown robust growth in recent years, with turnover rising from ₹15.5 crore in FY23 to ₹49.1 crore in FY25.
FE10, incorporated in March 2024, is a dedicated special purpose vehicle (SPV) created to execute new renewable energy projects. As a recently established entity, it has not yet reported revenues but is expected to spearhead expansion in the coming years.
Strategic Significance
Thermax’s fresh equity support underlines its commitment to scaling up renewable energy capacity at a time when India’s clean energy transition is accelerating. By channeling funds into FE10 via FEPL, the company ensures a structured framework to pursue greenfield renewable projects without diluting ownership.
The move also positions Thermax to capture rising demand from industrial and commercial clients looking to adopt sustainable and decentralized energy solutions amid tightening ESG requirements.
Expert Take
The ₹115-crore infusion is relatively modest in scale but strategically important. It strengthens FEPL’s balance sheet, enables FE10 to initiate project execution, and demonstrates Thermax’s intent to expand its clean energy footprint beyond its traditional energy solutions business. Investors will be watching closely how FE10 deploys these funds into viable solar, hybrid, or storage-led projects in FY26 and beyond.
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