VTLNSEVardhman Textiles Limited· Textiles - CottonMediumPositive
Announced Fri, 29 May · 18:09 IST

Vardhman Textiles Limited has informed the Exchange about Investment in Renew Green (MPR Four) Private Limited.

Strategic Transactions View source PDF

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AI summary

Vardhman Textiles has invested Rs. 24.46 crore to acquire a 31.2% equity stake in Renew Green (MPR Four) Private Limited by subscribing to 4,64,926 shares at Rs. 10 face value. This investment is for setting up a 19 MW AC Wind Solar Hybrid Power Plant (26.4 MW wind + 15 MW solar capacity) in Ratlam district, Madhya Pradesh. The company had previously executed a Share Subscription and Shareholder's Agreement along with a Captive Power Purchase Agreement with the target company. This represents Vardhman's strategic entry into renewable energy for captive power consumption at its manufacturing facilities.

Likely market impact

This investment enables Vardhman Textiles to secure renewable energy for its operations while earning returns on a 31.2% stake. The captive power arrangement reduces exposure to grid electricity costs and supports ESG compliance. The deal size is modest relative to Vardhman's scale, making near-term stock impact limited.