Noida-based automotive component manufacturer Samvardhana Motherson International’s board of directors has approved the acquisition of Onega Solar, a special purpose vehicle created to build a 15 MW group captive solar project in Uttar Pradesh.

The acquisition will be carried out through Motherson New Energy, a wholly owned subsidiary of the company.

Under the transaction, Motherson New Energy will purchase 100% of the equity share capital and existing compulsorily convertible debentures of Onega Solar Power from IB Energy, Singapore, for a cash consideration of ₹13.19 million (~$148,660).

After the acquisition is completed, the project will be developed, owned, and operated to supply power to captive consumers across the Motherson Group under long-term power transfer agreements that comply with Indian electricity regulations.

The power tariff has been evaluated and validated independently by Deloitte India to ensure that the agreement reflects arm’s length principles.

As required under the rules governing group captive power projects, a portion of the ownership of the solar venture will be transferred to captive consumers once key development milestones are reached.

This ownership will come through a secondary sale by Motherson New Energy.

The captive consumers, which include the company, its subsidiaries, joint ventures, associates, and promoter entities, will collectively hold 30% of the equity on a fully diluted basis and will also enter into their respective power transfer agreements.

Of the 30% equity that captive consumers will collectively hold on a fully diluted basis, Samvardhana Motherson International and its subsidiaries will hold 15.94%, the group’s joint ventures and associate companies will hold 9.76%, and the promoter entities will hold the remaining 4.30%

The project will be implemented under an engineering, procurement, and commissioning arrangement, followed by an operations and maintenance contract managed by Motherson New Energy.

The company expects the acquisition to be completed in the third quarter of the financial year 2026.

Onega Solar was incorporated on August 5, 2021, and has not yet begun commercial operations.

In June this year, Samvardhana Motherson International signed an agreement with HR Dhauliganga, a special-purpose vehicle of Hinduja Renewables Energy, to procure power from a 50 MW captive solar project in Tamil Nadu.

Total corporate funding, including venture capital funding, public market, and debt financing, for the solar sector globally, stood at $17.3 billion in the first nine months (9M) of 2025, 22% lower than the $22.3 billion raised in 9M 2024, according to Mercom Capital Group’s newly released 9M and Q3 2025 Solar Funding and M&A Report.

However, financing picked up in the third quarter (Q3) of 2025, totaling $6.5 billion across 49 deals, a 38% year-over-year (YoY) increase from $4.7 billion across 29 deals in Q3 2024. Quarter-over-quarter, funding rose 8% from $6 billion in 39 deals in Q2 2025.