Arvind Terminates TU28 Pact, Invests in TU12 & TU21

Arvind Limited terminated the Power Transfer Agreement (PTA) and Share Subscription and Shareholders Agreement (SSHA) dated May 12, 2025 with Torrent Urja 28 Private Limited (TU28).
Termination was mutually agreed upon and effective from August 25, 2026.
Reason for termination: Reallocation of the renewable power generation capacity.
No equity infusion or subscription towards equity shares of TU28 was made by the Company.
The Company does not hold any equity participation in TU28 as of the disclosure date.

Investment Amount: Up to ₹3.47 Crores
Equity Stake: 13.30% of equity share capital
Purpose: Procurement of renewable power by acquiring equity share capital towards proportionate share of the capacity
Consideration: Cash consideration
Timeline: Subscription in one or more tranches for an aggregate amount of up to ₹6.93 crores, representing minimum 26.6% equity of TU12, subject to achievement of agreed milestones
Company Background: TU12 is an Indian company incorporated on April 18, 2023, engaged in generation and transmission of Solar & Wind Hybrid energy. Turnover: NIL for last 3 years.

Investment Amount: Up to ₹17.33 Crores
Equity Stake: 26.60% of equity share capital
Purpose: Procurement of renewable power by acquiring equity share capital towards proportionate share of the capacity
Consideration: Cash consideration
Timeline: Subscription in one or more tranches for an aggregate amount of up to ₹17.33 crores, representing minimum 26.6% equity of TU21, subject to achievement of agreed milestones
Company Background: TU21 is an Indian company incorporated on August 5, 2024, engaged in generation and transmission of Solar & Wind Hybrid energy. Turnover: NIL for last 3 years.

Industry: Generation and transmission of Solar & Wind Hybrid energy and other renewable energy sources
Location: Gujarat, India
Objective: The Company wishes to offtake the Contracted Quantity of Electricity generated from the Project as a Captive User in Gujarat for significant financial/commercial benefits
Regulatory Approvals: Not Applicable required
Related Party Status: Neither transaction falls within related party transactions. Promoter/promoter group/group companies have no interest in TU12 or TU21.
Arm's Length Basis: All transactions conducted at arm's length

Parties: Arvind Limited, Torrent Green Energy Private Limited (Sponsor), and Torrent Urja 28 Private Limited (TU28)
Agreement Type: Termination Agreement
Execution Date: August 25, 2026
Terminated Agreements: Power Transfer Agreement and Share Subscription and Shareholders' Agreement dated May 12, 2025
Reason: Reallocation of Capacity

Total potential investment: Up to ₹20.80 crores (₹3.47 crores in TU12 + ₹17.33 crores in TU21)
No financial impact from TU28 termination as no equity was invested
Investments subject to milestone achievements and will be made in tranches

#Tags: #ArvindLimited #SEBIDisclosure #Regulation30 #RenewableEnergy #PowerProcurement #Neutral