Varun Beverages will invest up to Rs 4.10 crore in Jager Renewables, a special purpose vehicle set up to generate solar power in Uttar Pradesh.

The board approved the investment on October 7. The company will acquire up to 26 per cent of the SPV’s equity share capital through one or more tranches, according to an exchange filing.

The investment is aimed at securing solar power for captive consumption at its facilities in Gorakhpur and Prayagraj, as well as any new facilities it may set up in the state. The company said solar power should reduce electricity costs.

As a captive user, the investment is required under the group captive model prescribed under the Electricity Act, 2003. The transaction is expected to be completed on or before October 6, 2027.

Shares of Varun Beverages ended 0.33 per cent higher at Rs 440.70 on the NSE on Wednesday. The stock has gained 8.6 per cent over the past month.