Sangam (India) Limited has acquired an approximately 0.97% equity stake in CGE II Hybrid Energy Private Limited for a total consideration of ₹4.76 crore. The transaction, completed on October 5, 2026, aims to secure renewable energy under captive status for the company's manufacturing units in Rajasthan.

The acquisition was approved by the Investment and Borrowing Committee of the Board. Sangam executed both a Power Consumption Agreement and a Share Purchase & Shareholders Agreement with CGE II Hybrid Energy Private Limited and its parent, Continuum Green Energy Limited. The deal is structured as a cash payment made through online banking.

Strategic objective: Captive power

The primary motive behind the investment is to enhance captive renewable power consumption by up to 5 MW for Sangam’s plants located in Village Atun, Sareri, and Billiya Kalan in District Bhilwara, Rajasthan. The Wind-Solar Hybrid Power Project qualifies as a captive consumption project under the applicable Electricity Act and Rules, allowing the textile manufacturer to optimize its energy costs and sustainability profile.

The filing confirms that the proposed acquisition does not fall under related party transactions, as the promoter group holds no interest in the target entity. No specific government or regulatory approvals were required for this transaction.

Target entity financials

CGE II Hybrid Energy Private Limited is a subsidiary of Continuum Green Energy Limited, incorporated on December 2, 2021, specifically for renewable power generation and supply in Rajasthan. The target entity reported a turnover of ₹65.569 crore as on March 31, 2026, marking a significant shift from nil turnover in the preceding two fiscal years.

What the numbers show

The acquisition highlights a strategic alignment between capital expenditure and operational efficiency. While the equity stake is minor at 0.97%, the accompanying Power Consumption Agreement secures a fixed capacity of 5 MW. This structure suggests that the value proposition lies less in equity appreciation from the minority holding and more in the long-term stability of energy costs for Sangam’s Bhilwara operations. The target entity’s transition from zero revenue in FY24 and FY25 to ₹65.569 crore in FY26 indicates that the project has recently commenced commercial operations, aligning with Sangam’s immediate need for power supply.

Sangam (India) Limited has issued a postal ballot notice seeking shareholder approval for the appointment of Mr. Ranjan Jagetia as an independent director. The remote e-voting process begins on September 16, 2026, and concludes on October 15, 2026.

The Board of Directors recommends the appointment based on the advice of the Nomination and Remuneration Committee. Mr. Jagetia was initially appointed as an Additional Director in the category of Non-Executive Independent Director effective July 28, 2026. The proposed resolution seeks to formalize his tenure for three consecutive years, ending on July 27, 2029.

Key Voting Details

Shareholders holding equity shares as of the cut-off date, September 11, 2026, are eligible to vote. The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate the remote e-voting facility. The results of the postal ballot will be declared on or before October 17, 2026.

Director Profile

Mr. Ranjan Jagetia holds a Master of Business Administration from Louisiana Tech University and a Master of Accountancy from Case Western Reserve University. He brings extensive experience in international business, strategic management, finance, and apparel manufacturing. Currently, he does not hold directorships in other Indian public companies and has no shareholding in Sangam (India) Limited.

Upon confirmation by shareholders, Mr. Jagetia will serve on the Audit Committee and the Stakeholders' Relationship Committee. His remuneration will comprise fees for attending board and committee meetings, along with reimbursement of expenses incurred for participation.