Torrent Power Limited has completed an internal restructuring transaction involving the sale of equity shares of three wholly-owned subsidiaries to another group company. The transaction was completed on March 30, 2026 at 03:16 pm, as disclosed to the stock exchanges under Regulation 30 of SEBI Listing Regulations.

Transaction Details

The company sold equity shares of three subsidiaries to Torrent Energy Storage Solutions Private Limited, which is also a wholly-owned subsidiary of Torrent Power. The transaction represents an internal corporate restructuring within the group.

Subsidiaries Involved

The sale involved three energy storage solution companies, each with identical consideration amounts:

All three subsidiaries showed negative net worth positions and had no revenue contribution during the last financial year. Their combined net worth deficit was ₹ 6,00,000, representing 0.00% of the company's consolidated net worth.

Company Financial Context

Torrent Power provided context for the transaction by disclosing its overall financial position during the last financial year:

Regulatory Compliance

The transaction has been structured as a related party transaction conducted on an arm's length basis. Since the shares were transferred to a wholly-owned subsidiary, no formal sale agreement was required. The company confirmed that the transaction does not fall under any scheme of arrangement and complies with all applicable regulatory requirements under SEBI Listing Regulations.

Torrent Power Limited has received a significant GST demand order from tax authorities in Agra, totaling ₹189.42 crores including penalties. The company disclosed this development to stock exchanges on March 28, 2026, pursuant to regulatory requirements under SEBI Listing Regulations.

GST Demand Details

The demand order dated March 27, 2026 was received from the Office of the Additional Commissioner, Agra, Lucknow, CBIC, State: Uttar Pradesh. The order demands ₹94.71 crores of CGST & SGST for the period from April 2019 to September 2024 under provisions of Section 74 & 74A of CGST Act 2017 read with Section 74 & 74A of UPGST Act 2017 and Section 20 of IGST Act 2017.

The demand specifically relates to GST on rent on immovable properties and on incidental and ancillary services. The department has also imposed an equal penalty amount of ₹94.71 crores under various sections of the GST Acts.

Breakdown of Demand and Penalty

Company's Response and Impact

Torrent Power has indicated it will challenge the order and file an appeal against the said demand. The company has stated that there is no material financial impact expected from this development, suggesting confidence in its position regarding the disputed GST liability.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company received the order on March 27, 2026 at 6:27 pm when it was uploaded on the GST portal, and promptly informed the stock exchanges the following day.

The demand order references violations under multiple sections of GST legislation, specifically Section 74 & Section 74A of the CGST Act, 2017 read with Section 74 & 74A of the UPGST Act and Section 20 of IGST Act, 2017. The case involves a substantial period of over five years, from April 2019 to September 2024, indicating the scope and complexity of the tax assessment.