Torrent Pharmaceuticals Limited announced today that it has entered into a Share Subscription and Shareholders' Agreement (SSSA) to acquire a 26% equity stake in Torrent Urja 27 Private Limited. This investment aims to enhance the company's use of renewable power sources for its operations. The acquisition will involve a cash consideration of ₹7.92 crore.
The acquisition is structured as a subscription to equity shares of Torrent Urja 27 Private Limited, a special purpose vehicle focused on developing a captive hybrid (Solar + Wind) power project in Gujarat.
Details of the Acquisition
Target Entity: Torrent Urja 27 Private Limited
- Torrent Urja is currently a wholly-owned subsidiary of Torrent Green Energy Private Limited.
- The company was incorporated on August 6, 2024, and is yet to commence its business operations.
- As of March 31, 2025, Torrent Urja reported nil turnover.
Consideration: The acquisition will involve a cash consideration.
Cost of Acquisition: Torrent Pharma will acquire 79,19,340 Class A Equity Shares of Torrent Urja at a face value of ₹10 each, totaling ₹7.92 crore (Rupees Seven Crores Ninety-One Lakhs Ninety-Three Thousand and Four Hundred Only).
Rationale for Acquisition: The acquisition will enable Torrent Pharma to increase its share of renewable power sources and comply with regulatory requirements for captive power consumption under Indian electricity laws.
Related Party Transaction: The transaction qualifies as a related party transaction as Torrent Urja is a step-down subsidiary of Torrent Pharma's holding company. The transaction is being carried out on an arm's length basis.
Industry: The entity operates in the generation and transmission of hybrid energy, including wind, solar, and other sources of renewable energy.
Anticipated Completion: The acquisition is expected to be completed within 18 to 20 months.
Regulatory Approvals: No specific governmental or regulatory approvals are required for this acquisition.
The investment is intended to enhance the share of renewable power sources in the operation of the Company.
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