Vardhman Textiles acquires 26% stake in Serentica Renewables unit
- Vardhman Textiles invests ₹41.85 crore for a minimum 26% stake in Serentica Renewables India 32
- The deal secures 27 MW of wind-solar hybrid power for facilities in Himachal Pradesh
- Total project capacity includes 40 MW wind in Karnataka and 40 MWp/30 MW solar in Rajasthan
- Transaction is cash-based with no related party implications or promoter interest disclosed
*this image is generated using AI for illustrative purposes only.
Vardhman Textiles Limited has approved the acquisition of a minimum 26% equity stake in Serentica Renewables India 32 Private Limited for ₹41.85 crore. The move secures 27 MW of wind-solar hybrid power supply for the company's textile facilities in Himachal Pradesh, ensuring compliance with captive consumption regulations.
The Committee of Directors (Renewable Energy) executed the Share Subscription cum Shareholders' Agreement and Power Delivery Agreement on October 5, 2026. The transaction involves the development of a 40 MW wind plant in Karnataka and a 40 MWp/30 MW solar plant in Rajasthan, connected to the ISTS grid substation.
Deal Structure and Financials
The total paid-up capital of Serentica Renewables India 32 Private Limited is set at ₹160.96 crore. Vardhman will contribute ₹41.85 crore for its minority stake, while Serentica Renewables India Private Limited will contribute ₹119.11 crore for up to a 74% stake. The consideration is entirely cash-based.
| Particular | Details |
|---|---|
| Target Entity | Serentica Renewables India 32 Private Limited |
| Stake Acquired | Minimum 26% equity shares |
| Investment Amount | ₹41.85 crore |
| Total Project Capacity | 80 MW (Wind + Solar) |
| Contracted Supply | 27 MW Hybrid Power |
| Location of Supply | Himachal Pradesh Facilities |
Strategic Rationale and Operations
Serentica Renewables India 32 is a Special Purpose Vehicle incorporated on June 29, 2025, under the Companies Act, 2013. It has not yet commenced commercial operations. The project aims to develop renewable energy assets to meet Vardhman's captive power requirements under Indian electricity laws.
Key operational details include:
- Power Source: 40 MW wind plant in Karnataka and 40 MWp/30 MW solar plant in Rajasthan.
- Supply Mechanism: Transmission via ISTS grid substation to Vardhman's facilities.
- Governance: Vardhman holds rights over Reserved Matters but will not appoint any director to the Power Producer's board.
- Timeline: Capital contribution will occur in three tranches linked to project completion stages.
What the Numbers Show
The investment represents approximately 26% of the total capital outlay for the specific Special Purpose Vehicle, aligning with the minimum threshold required for captive user status. By securing a fixed contracted capacity of 27 MW from an 80 MW gross generation potential, Vardhman is hedging against energy cost volatility while diversifying away from pure thermal reliance. The absence of board representation suggests a passive financial stake focused purely on power security rather than operational control.
Historical Stock Returns for Vardhman Textiles
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.73% | -5.41% | -11.49% | +0.62% | +30.20% | +45.00% |
How will the completion timeline for the Karnataka and Rajasthan plants impact Vardhman's short-term energy cost exposure before the 27 MW supply becomes operational?
What are the potential regulatory risks if cross-state transmission charges for ISTS-connected renewable power increase, affecting the long-term economics of this captive consumption model?
Will this passive minority stake structure serve as a template for other Indian textile manufacturers seeking to decarbonize without assuming operational control of energy assets?
15
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
