New Delhi, May 12 -- Premier Energies Ltd, an Indian solar cell and module manufacturer backed by private equity firm GEF Capital Partners, has terminated its planned acquisition of solar inverter maker K-Solare Energy Pvt Ltd through a joint venture with Syrma SGS Technology Ltd.
The Hyderabad-based company and its partner Syrma SGS had agreed in October 2025 to jointly acquire Pune-based K-Solare for Rs 170 crore ($19.4 million). Premier was to take a 51% stake in the joint venture and Syrma SGS the remaining 49%.
Premier Energies informed stock exchanges late on Monday that, after mutual discussions and an evaluation of evolving strategic considerations, the parties had decided not to proceed with the transaction. The discussions were terminated amicably, with no material financial implications for the company, it said in the regulatory filing.
"The company remains committed to the solar inverter and renewable energy electronics segment and is evaluating alternative approaches to develop this business," Premier said in the filing.
The scrapped deal was part of Premier Energies' broader push to expand beyond solar cell and module manufacturing into complementary areas such as power electronics and transmission. In the same October announcement, the company disclosed a separate 51% acquisition of transformer maker Transcon Industries for about Rs 500 crore.
Premier Energies is one of India's larger integrated solar photovoltaic manufacturers. GEF Capital, a climate-focused private equity firm, has been a key backer of the company and held a 5.55% stake at the end of March.
The termination comes more than six months after the initial agreement, during which the long-stop date for closing had been extended. Some market reports indicated that certain conditions precedent to the deal were not met.
Shares of Premier Energies closed down marginally on Monday, while Syrma SGS shares were largely unchanged. The solar sector has faced margin pressures amid global competition and policy shifts, though domestic demand for renewable energy components remains supported by India's clean energy targets.
Published by HT Digital Content Services with permission from VC Circle.