Arvind Signs Agreement to Buy 26% Stake in Torrent Urja 28

Arvind Limited has signed a Share Subscription and Shareholders’ Agreement with Torrent Green Energy and its subsidiary, Torrent Urja 28 Private Limited (TUPL), on May 12, 2025. The move is aimed at sourcing power for Arvind’s captive electricity needs through a hybrid wind-solar project in Gujarat.

As of 12:53 PM on May 13, 2025, Arvind share price was trading at ₹391.05, a 1.53% increase,  with a -18.25% decline over the past six months and a 37.68% rise over the past year.

Investment and Regulatory Compliance

As part of the agreement, Arvind and other user members will subscribe to a minimum of 26% of TUPL’s equity share capital. This meets the legal requirement for being classified as a “captive user” under Indian electricity laws. Arvind’s individual investment will cover 15.96% of the total equity in TUPL. The company plans to invest up to ₹21 crore, out of a total of ₹35 crore being raised.

Power Purchase Agreement

The investment supports a 20 MW hybrid (wind and solar) power project. Arvind has signed a 25-year Power Purchase Agreement (PPA) with TUPL. The agreement includes a Take-or-Pay clause. The project, once operational, is expected to supply around 60% of Arvind’s total electricity requirement.

Cost and Timeline

Arvind will receive power at a landed cost of ₹5 per unit. The payback period for the investment is expected to be under two years. Torrent Green Energy is responsible for the entire project execution, including construction, operations, maintenance, and obtaining necessary approvals. The project is expected to be completed in approximately 17 months, with commissioning likely in Q3 FY27.

Company Background

Torrent Urja 28 Private Limited was incorporated on January 21, 2025. The company has no reported turnover as of now and is set up specifically to handle this hybrid energy project. It is not a related party to Arvind, and there is no promoter group involvement in the transaction.

Read more: Torrent Power Sets Up New Subsidiary Torrent Urja Projects to Boost Renewable Energy Projects

Conclusion

Arvind’s participation in the equity of TUPL is part of a structured agreement to access renewable energy through a captive model, in line with applicable legal provisions. The project is currently under execution and is expected to begin supplying power by the end of FY27.

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