Nandan Denim to Acquire 6.1% Stake in Renewable Power SPV for Bareja Plant
Nandan Denim Ltd. announced a strategic move to secure renewable power sources, detailing its plan to acquire a significant equity stake in a Special Purpose Vehicle (SPV) managing wind and solar power generation. The investment aims to help the company reduce power costs at its Bareja Plant.The acquisition was approved during a Board of Directors meeting held on April 17, 2026. Nandan Denim Ltd. plans to enter into a Share Transfer cum Shareholders' Agreement with M/s. Opera Vayu (Narmada) Private Limited (the SPV) and Shivman Wind Energy Private Limited, which is serving as the Promoter and Project Implementer.
Through this agreement, Nandan Denim Ltd. will acquire 6.1% equity shareholding in the SPV. This holding represents a portion of the 26% user members required under the Electricity Act, 2003, for the Group Captive Renewable Energy Power Plant.
The strategic goal of the acquisition is centered on increasing the sourcing of renewable power to lower the cost of electricity at the company's Bareja Plant. Specifically, Nandan Denim Ltd., acting as a User Member under the Captive Power Route, will procure 4.3 MW of power from the group captive renewable energy power plant, which has a total capacity of 23.1 MW (comprising Wind and 25 MW DC Solar). This arrangement is set to enable the company to receive wind and solar power from the SPV at a competitive market rate for a period of 25 years.
Acquisition Details
The acquisition is structured as a cash consideration transaction. The company will invest ₹ 4,00,20,960 and acquire 40,02,096 equity shares, each having a face value of ₹ 10/-.The terms of the deal include an irrevocable Bank Guarantee of ₹ 1.90 Crores, required for three months of power unit billing.
A detailed overview of the acquisition's operational and financial aspects is presented below:
| Parameter | Detail |
|---|---|
| Acquiring Entity | Nandan Denim Ltd. |
| Target Entity (SPV) | Opera Vayu (Narmada) Private Limited |
| SPV Incorporation Date | August 1, 2022 |
| Industry | Generation and Transmission of Renewable Energy (Wind and Solar Power) |
| Equity Acquired | 6.1% |
| Cost of Acquisition | ₹ 4,00,20,960 |
| Power Procurement | 4.3 MW out of 23.1 MW (Wind & 25 MW DC Solar) |
| Completion Timeline | By June 30, 2026 |
Opera Vayu (Narmada) Private Limited is a Special Purpose Vehicle (SPV) established for setting up a Wind Solar Hybrid Power Plant on a captive basis within Gujarat. For the financial year ended March 31, 2025, the SPV reported Nil turnover.
The acquisition is anticipated to be completed by June 30, 2026.
NDL Stock Price Movement
Today, Nandan Denim Limited shares edged higher to close at ₹2.69, gaining 3.04% in today's trading session. The stock recorded robust activity, trading on a total volume of 1.18 million shares.Source:
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