Aurobindo Pharma’s Board of Directors has approved an investment of Rs. 66 crores to acquire up to a 26% stake in Garuda Renewables Private Limited. This move is strategic, enabling the company to enter into a Power Purchase Agreement (PPA) for renewable energy sourced from hybrid wind and solar projects. The objective is to achieve substantial savings in power costs, lower the initial outlay, and significantly improve Aurobindo’s ESG profile by reducing carbon emissions, reinforcing its commitment to green energy.
Board Approves Strategic Renewable Energy Investment
The Board of Directors of Aurobindo Pharma Limited met on February 9, 2026, and granted approval for a significant strategic initiative concerning renewable energy procurement. The key resolution was the approval to enter into a Power Purchase Agreement (PPA) with Garuda Renewables Private Limited.
In connection with this agreement, the Company will invest Rs. 66 crores (Rupees sixty-six crores). This capital outlay is designated for acquiring up to a 26% equity stake in Garuda Renewables Private Limited.
Details of the Target Entity and Rationale
Garuda Renewables Private Limited (Garuda) was incorporated in December 2025 as a Special Purpose Vehicle (SPV). Its primary mandate is the development, ownership, and operation of greenfield investments in solar and wind hybrid power projects, supplying power to Aurobindo on a long-term basis.
The acquisition falls under the Generation and distribution of solar and wind power industry segment. The core rationale driving this acquisition includes achieving substantial savings in power costs with a lower initial outlay. Furthermore, the move is intended to elevate the Company’s ESG profile by substantially reducing carbon emissions, thereby reinforcing the commitment towards green energy adoption.
Transaction Structure and Background
The consideration for the acquisition will be Cash consideration, totaling INR 66 crores for the 26% equity share capital. It has been confirmed that the acquisition does not involve related party transactions, and the promoters/promoter groups hold no interest in Garuda.
Garuda is a subsidiary of Ecoren Energy Private Limited, which was established in 2010. Ecoren is noted as a leading independent developer of renewable projects, boasting a track record of approximately ~5GW projects commissioned or under construction, alongside a pipeline of 20 GW.
Timeline and Conclusion
The indicative time period set for the completion of this acquisition is approximately 6 months, contingent upon receiving the necessary regulatory approvals, which Garuda is responsible for obtaining to generate and supply the hybrid power.
The Board meeting regarding this resolution commenced at 4:30 p.m. and concluded at 6:30 p.m. on the date of this announcement.
Source: BSE
