VTLNSEVardhman Textiles Limited· Textiles - CottonHighPositive
Announced Thu, 23 Apr · 15:53 IST

Vardhman Textiles Limited has informed the Exchange about execution of Agreements.

Listed Co AcquisitionMarquee Jv AnnouncedStrategic Transactions View source PDF

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AI summary

Vardhman Textiles Limited has executed agreements to acquire 31.2% stake in ReNew Green (MPR Four) Private Limited for Rs. 24.29 crore. The investment is part of a joint venture with Renew Green Energy Solutions Pvt. Ltd. (holding 68.8%), which will set up a 19 MW AC Wind-Solar Hybrid Power Plant in District Ratlam, Madhya Pradesh. The total project capital is Rs. 77.86 crore. The power generated will be supplied exclusively to Vardhman Textiles under captive power rules to meet its regulatory requirements. The target company is a Special Purpose Vehicle incorporated in 2022 and has not yet commenced commercial operations. The transaction is not a related party transaction.

Likely market impact

This acquisition allows Vardhman Textiles to secure captive renewable energy at competitive rates, reducing dependency on grid power and potentially lowering energy costs. The company gains access to ~41 MW of renewable capacity while maintaining operational rights with the JV partner. This strategic move supports sustainability goals and may improve operational cost efficiency.