Vardhman Textiles signed agreements on October 5, 2026, to acquire a minimum 26% stake in Serentica Renewables India 32 Private Limited for Rs 41.85 crore, according to its BSE filing. The arrangements cover the supply of wind-solar hybrid power to the textile company's facilities in Himachal Pradesh.

The company's Committee of Directors (Renewable Energy) approved the Share Subscription cum Shareholders’ Agreement and Power Delivery Agreement at its meeting that day. The parties executed both agreements on the same date.

The share subscription agreement involves Vardhman Textiles, developer Serentica Renewables India Private Limited and power producer Serentica Renewables India 32 Private Limited. The power delivery agreement is between Vardhman Textiles, as captive user, and the power producer.

Equity contribution linked to project stages

The power producer's planned equity capital is Rs 160.96 crore. Vardhman Textiles will contribute Rs 41.85 crore for a minimum 26% equity holding, while Serentica Renewables India Private Limited will contribute Rs 119.11 crore for a holding of up to 74%.

  • Vardhman will make its cash contribution in three tranches, depending on completion of different project stages.
  • The equity acquisition is intended to meet regulatory requirements for captive power consumption under Indian electricity laws.
  • The company stated that no governmental or regulatory approvals are required for the acquisition.

The project includes a 40 MW wind plant in Karnataka and a solar plant in Rajasthan, connected to an inter-state transmission system grid substation. It will supply 27 MW of contracted wind-solar hybrid capacity to Vardhman's Himachal Pradesh facilities under the captive power arrangement.

Governance rights and target company

Vardhman will have rights over reserved matters, while voting rights for Vardhman and the developer will be proportionate to their shareholdings. Vardhman will not appoint a director to the power producer's board. The power producer will have the right to establish and operate the plant.

Serentica Renewables India 32 Private Limited was incorporated on June 29, 2025, as a special purpose vehicle under the captive scheme. It develops and operates renewable power projects and has yet to commence commercial operations.

The filing states that the proposed acquisition is not a related-party transaction and that Vardhman's promoters, promoter group and group companies have no interest in the target entity.