Arvind Limited announced the termination of its Power Transfer Agreement (PTA) and Share Subscription and Shareholders Agreement (SSHA) with Torrent Urja 28 Private Limited, effective August 25, 2026. This restructuring is due to the reallocation of hybrid renewable power capacity. Concurrently, Arvind has entered into new PTA and SSHA agreements with Torrent Urja 12 Private Limited and Torrent Urja 21 Private Limited, acquiring 13.30% and 26.60% equity share capital respectively in these entities for renewable power procurement.
Arvind Limited Restructures Renewable Power Agreements
Arvind Limited has officially informed the stock exchanges about significant changes in its renewable power procurement arrangements. The company has terminated its earlier Power Transfer Agreement (PTA) and Share Subscription and Shareholders Agreement (SSHA) with Torrent Urja 28 Private Limited (“TU28”). This termination, which took effect on August 25, 2026, was a mutual decision stemming from the reallocation of hybrid renewable power capacity.
It is noted that as of the disclosure date, no equity infusion or subscription towards equity shares of TU28 had been made by Arvind Limited. Consequently, the company holds no equity participation in TU28 from this prior transaction.
New Agreements and Equity Infusion
In light of the capacity reallocation, Arvind Limited has entered into new, separate Power Transfer Agreements (PTA) and Share Subscription and Shareholders’ Agreements (SSHA) with two different entities: Torrent Urja 12 Private Limited (“TU12”) and Torrent Urja 21 Private Limited (“TU21”). These new agreements are for the procurement of renewable power.
Under these new arrangements, Arvind Limited will acquire 13.30% equity share capital in TU12 and 26.60% equity share capital in TU21. The information regarding these new agreements was received by the Company on August 25, 2026, at 05:00 PM.
Details of New Partnerships
For TU12, the company plans to subscribe to equity shares for an aggregate amount of up to ₹6.93 crores, representing a minimum of 26.6% equity. Arvind will invest up to ₹3.47 Crores towards its proportionate share in the capacity. TU12 is an Indian company incorporated on April 18, 2023, to set up a Hybrid Power Project in Gujarat, focusing on Solar & Wind Hybrid energy. The cost of acquisition for its stake is up to ₹3.47 Crores.
For TU21, Arvind Limited proposes to subscribe to equity shares for an aggregate amount of up to ₹17.33 crores, representing a minimum of 26.6% equity. TU21 is an Indian Company incorporated on August 5, 2024, also for setting up Hybrid Power generation facilities in Gujarat. The cost of acquisition for its stake is up to ₹17.33 Crores.
In both cases, the acquisition is a cash consideration and is subject to the achievement of agreed milestones. The primary objective for Arvind Limited is to secure the contracted quantity of electricity generated from these projects as a Captive User in Gujarat, driven by significant financial and commercial benefits. The transactions do not fall within the purview of related party transactions, and no promoter or group companies have any interest in the acquired entities.
Source: BSE
