Sanathan Textiles Subsidiary Acquires Stake in Serentica Renewables
Mumbai – Sanathan Textiles Limited announced that its wholly-owned subsidiary, Sanathan Polycot Private Limited (SPPL), has entered into a Share Subscription and Shareholders' Agreement (SSSHA) and a Power Supply and Consumption Agreement (PSCA) to acquire a 26% stake in Serentica Renewables India 33 Private Limited. Serentica Renewables India 33 Private Limited is a subsidiary of Serentica Renewables India Private Limited.The acquisition, valued at Rs. 48 Crores, is intended to secure a contracted capacity of 32 MW of renewable power for SPPL’s manufacturing operations. The transaction is subject to customary conditions precedent and regulatory approvals and is expected to be completed according to the agreed tranche timelines.
According to Sanathan Textiles, the acquisition will allow SPPL to secure long-term power supply, aligning with the company’s sustainability goals and potential for energy cost optimization. The acquisition is not considered a related party transaction.
Serentica Renewables India 33 Private Limited, incorporated on June 29, 2025, is engaged in the development and operation of renewable energy projects, including solar and wind, and operates under a Captive User Framework.
| Particular | Details | |
|---|---|---|
| a) | Nameofthetargetentity,detailsinbriefsuch as size, turnover etc.; | Serentica Renewables India 33 Private Limited |
| b) | Whether the acquisition would fall within related party transaction(s) and whether the promoter/ promoter group/ group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at 'arm's length'; | The proposed acquisition is not a related party transaction(s) and the promoter/ promoter group companies have no interest in the proposed acquisition. |
| c) | Industry to which the entity being acquired belongs; | Renewable Energy - Power Generation (Solar/Wind) and Power Supply under Captive Consumption Framework |
| d) | Objects and impact of acquisition (including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity); | The primary objective of the acquisition is to secure long-term cost-effective supply of renewable power for the manufacturing operations of the Sanathan Polycot Private Limited. The aforesaid investment will allow SPPL to secure long term power supply in accordance with the Captive User Framework. It also aligns with the Company’s sustainability goals, including reducing the emissions intensity of its operations, along with potential long-term energy cost optimisation. |
| e) | Brief details of any governmental or regulatory approvals required for the acquisition; | Not Applicable |
| f) | Indicative time period for completion of the acquisition; | The acquisition is subject to customary conditions precedents and is expected to be completed in accordance with the Share Subscription and Shareholders' Agreement . |
|---|---|---|
| g) | Nature of consideration - whether cash consideration or share swap and details of the same; | The consideration for the acquisition is Rs. 48 Crores, payable by Sanathan Polycot Private Limited towards acquisition of Equity Shares of the Target Entity, in one or more tranches, in accordance with the terms of the Share Subscription and Shareholders' Agreement. The transaction does not involve any share swap or issuance of shares by the Company. |
| h) | Cost of acquisition or the price at which the shares are acquired; | The consideration for the acquisition is Rs. 48 Crores, payable by Sanathan Polycot Private Limited towards acquisition of Equity Shares of the Target Entity, in one or more tranches, in accordance with the terms of the Share Subscription and Shareholders' Agreement. The transaction does not involve any share swap or issuance of shares by the Company. |
| i) | Percentage of shareholding / control acquired and/ or numberofshares acquired; | Sanathan Polycot Private Limited will hold a non- controlling interest of at least 26% (post- acquisition) in Serentica Renewables India 33 Private Limited. |
| j) | Brief background about the entity acquired in terms of products/ line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information (in brief); | Serentica Renewables India 33Private Limited was incorporated on June 29, 2025, under the Companies Act, 2013, and is engaged in development and operation of renewable energy (solar and wind) projects, hence there is no history of last 3 years pertaining to financial disclosures that can be provided. It is a subsidiary of Serentica Renewables India Private Limited and is setting up ISTS-connected captive power projects in India. |
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