Arvind Limited has informed the Exchange about Acquisition
ARVIND · price
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Arvind Limited, along with other user members, will subscribe to a minimum 26% equity stake in Torrent Urja 28 Private Limited (TUPL), a subsidiary of Torrent Green Energy, with Arvind's own share being 15.96%. Arvind will invest up to Rs. 21 crore (out of a total Rs. 35 crore raise by TUPL) in cash, to help set up a 20 MW hybrid wind-solar power plant in Gujarat for its captive use. The company has signed a 25-year Power Purchase Agreement at a landed cost of Rs. 5 per unit, with a payback period of under 2 years. Once commissioned (expected by Q3 FY27), the project is projected to meet around 60% of Arvind's total electricity needs from renewables and improve its consolidated EBITDA margin by 30-40 basis points by FY27. The transaction is not a related-party deal, as promoters and group companies have no interest in TUPL.
Positive for shareholders — the investment supports Arvind's ESG and net-zero goals, locks in cheaper renewable power (Rs. 5/unit vs grid cost), and offers a quick payback under 2 years along with a modest 30-40 bps EBITDA margin uplift by FY27. The Rs. 21 crore size is small relative to the company, limiting downside risk while delivering clear cost savings.