VARDHMAN TEXTILES LIMITED
Acquisition of 26% Stake in Serentica Renewables India 32 Private Limited
Main Body
Vardhman Textiles Limited has executed a Share Subscription cum Shareholders' Agreement and Power Delivery Agreement to acquire a minimum 26% stake in Serentica Renewables India 32 Private Limited. The agreements were approved by the Committee of Directors (Renewable Energy) and executed on October 5, 2026.
Financial Details: Vardhman will invest Rs. 41.85 crore for a minimum 26% equity stake. The total equity capital of Serentica Renewables India 32 Private Limited will be Rs. 160.96 crore, with Serentica Renewables India Private Limited contributing Rs. 119.11 crore for up to 74% stake.
Project Details: The investment is for developing an 80MW renewable energy project comprising 40MW wind plant in Karnataka and 40MWp/30MW solar plant in Rajasthan, connected to the ISTS grid. The project will supply 27MW of wind-solar hybrid power to Vardhman's facilities in Himachal Pradesh.
Parties Involved: The Share Subscription cum Shareholders' Agreement is between Serentica Renewables India Private Limited (Developer), Vardhman Textiles Limited (Captive User), and Serentica Renewables India 32 Private Limited (Power Producer). The Power Delivery Agreement is between Vardhman Textiles Limited and Serentica Renewables India 32 Private Limited.
Strategic Rationale: The acquisition is to comply with regulatory captive power consumption requirements under India Electricity laws, as Vardhman's business is outside the main line of the power producer.
Governance Rights: Voting rights will be proportionate to shareholding. Vardhman will not appoint any director on the Board of the Power Producer. The Power Producer has rights to establish and operate the plant, while Vardhman has reserved rights over certain matters.
Payment Structure: Vardhman will make its 26% equity contribution in three tranches depending on completion of different stages of the Project.
Target Entity: Serentica Renewables India 32 Private Limited is a Special Purpose Vehicle incorporated on June 29, 2025, under the Companies Act, 2013, created under captive scheme. It has not started commercial operations yet.
Regulatory Aspects: The transaction does not fall within related party transactions purview. No governmental or regulatory approvals are required beyond the executed agreements. No potential conflict of interest shall arise out of these Agreements.
Other Key Announcements
No other material announcements were disclosed in this filing.