Vardhman Textiles Approves Acquisition of 31.2% Stake in Renewable Energy Project
Vardhman Textiles Limited has announced the approval and subsequent execution of agreements related to the acquisition of a 31.2% stake in ReNew Green (MPR Four) Private Limited. The arrangements involve a Share Subscription and Shareholders' Agreement, alongside a Captive Power Purchase Agreement, aiming to establish a captive power source for the company.On April 23, 2026, the Committee of Directors (Renewable Energy) of Vardhman Textiles Limited formally approved the agreements. The agreements were executed by Vardhman Textiles Limited (the Captive User), Renew Green Energy Solutions Private Limited (the Promoter), and ReNew Green (MPR Four) Private Limited (the Power Producer).
The primary objective of these agreements is the setup of a 19 MW AC Wind Solar Hybrid Power Plant at District Ratlam, Madhya Pradesh. The power generated by the plant will be supplied exclusively to Vardhman Textiles Limited under the Captive Rules, with the operation handled by ReNew Green (MPR Four) Private Limited.
Investment and Shareholding Structure
The transaction involves Vardhman Textiles Limited acquiring a 31.2% stake in ReNew Green (MPR Four) Private Limited. The total initial capital of ReNew Green (MPR Four) Private Limited is set at Rs. 77.86 Crore (approx).The financial contributions of the participating parties are detailed below:
| Party | Role | Stake (%) | Contribution Amount |
|---|---|---|---|
| Vardhman Textiles Limited | Captive User | 31.20% | Rs. 24.29 Crore |
| Renew Green Energy Solutions Pvt. Ltd. | Promoter | 68.80% | Rs. 53.57 Crore |
Agreement Details and Operational Aspects
The parties established clear operational roles under the agreements. The Power Producer holds the rights to establish and operate the plant, while Vardhman Textiles Limited maintains rights over Reserved Matters. Both Vardhman Textiles Limited and Renew Green Energy Solutions Pvt. Ltd. are set to hold voting rights in ReNew Green (MPR Four) Private Limited, proportionate to their respective shareholdings.The power project itself, located in District Ratlam, Madhya Pradesh, comprises a total capacity of 19 MW AC, which includes 26.4 MW of wind capacity and 15 MW of solar capacity.
The acquisition was identified as a strategic move for Vardhman Textiles Limited to comply with the regulatory requirement for captive power consumption under Indian Electricity laws. Vardhman Textiles Limited will make its Equity Contribution of 31.2% in three tranches, dependent upon the completion of different stages of the Project.
No potential conflict of interest was noted from the agreements, and Vardhman Textiles Limited confirmed it would not appoint any director on the Board of the Power Producer.
VTL Stock Price Movement
Today, Vardhman Textiles Limited shares edged higher to close at ₹569.4, finishing up 0.87% for the session. The stock settled today with a total traded volume of 283,556 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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