Whalesbook
Century Enka Limited has acquired an additional 37,96,086 equity shares in its subsidiary, ABREL Century Energy Limited (ABRELCEL), for ₹3.80 crore. The transaction, which took place on March 27, 2026, was made via application money transfer.
This investment is crucial for Century Enka to maintain its 26% shareholding in ABRELCEL. This specific ownership level is a regulatory requirement for ABRELCEL to continue operating as a qualified captive power producer in India. By securing this stake, Century Enka ensures its manufacturing operations will continue to receive a stable and compliant energy supply.
ABRELCEL, incorporated on March 10, 2022, reported a turnover of ₹19.49 crore as of March 31, 2025. Century Enka, a key player in manufacturing nylon tyre cord fabrics and industrial yarns, operates energy-intensive businesses. Ensuring a secure and cost-effective energy source through captive power generation is a vital strategy in this sector.
Failure to meet the minimum shareholding requirements could lead to ABRELCEL losing its captive user status, potentially disrupting Century Enka's operations or increasing costs. This share purchase effectively safeguards business continuity and regulatory compliance.
For context, Century Enka reported consolidated net sales of ₹1,645.5 crore for the fiscal year 2025. The company posted a consolidated net profit of ₹93.8 crore for the same period, maintaining a low consolidated Debt to Equity ratio of 0.06 as of FY25. Similar to other major tyre manufacturers who focus on reliable energy supply, Century Enka's move addresses this common industry challenge.