Torrent Pharmaceuticals Ltd has increased its proposed investment in Torrent Urja 27 Pvt Ltd to ₹11.88 crore to acquire a 26 per cent stake, following an increase in project capacity. According to a regulatory filing on Monday, the company had earlier entered into an agreement to invest ₹7.92 crore for the same stake. An amendment agreement to the share subscription and shareholders' agreement was executed on Monday to enhance the investment to ₹11.88 crore from ₹7.92 crore for 1,18,79,010 Class A equity shares of face value ₹10 each. The investment is being made through an amendment to the Share Subscription and Shareholders' Agreement (SSSA).
Torrent Urja 27 is setting up a captive hybrid (solar and wind) power project in Gujarat. The project will generate and transmit hybrid energy from wind, solar and other renewable sources. As reported by The Hindu BusinessLine, the transaction aims to enhance Torrent Pharma's share of renewable power sources and fulfil the regulatory criteria for a captive user under Indian electricity laws. The revised investment reflects an increase in the project capacity of the target entity. The acquisition is being done on an arm's length basis for cash consideration and is expected to be completed in 18-21 months.
Torrent Urja is currently a wholly owned subsidiary of Torrent Green Energy Private Ltd and is a special purpose vehicle formed for setting up captive power projects in Gujarat. According to the regulatory filing, this strategic investment aligns with Torrent Pharma's commitment to expanding its renewable energy portfolio and achieving regulatory compliance for captive power usage under Indian electricity regulations. The transaction is classified as a related party deal conducted on an arm's length basis. The entity was incorporated in August 2024 and is yet to commence business operations, reporting nil turnover as on March 31, 2026. Torrent Urja is described as an associate company of Torrent Pharma and a step-down subsidiary of the company's holding company.
Torrent Pharma share price was trading at ₹4,985.00 on BSE as compared to the previous close of ₹4,935.00, showing positive market response to the investment enhancement. The stock hit an intraday high of ₹4,990.00 and intraday low of ₹4,924.65, with total shares traded of 42,574 in over 3,359 trades and net turnover of ₹21.14 crore. No government or regulatory approval is required for the transaction, according to the filing. The project capacity increase has prompted the enhanced investment commitment, demonstrating the company's commitment to renewable energy expansion despite current market conditions. The primary objective is to secure a reliable source of renewable energy for the pharmaceutical major's manufacturing facilities, aligning capital allocation with sustainability goals while adhering to legal frameworks governing captive power consumption in India.
