Sanathan Textiles Ltd Subsidiary to Acquire 26% Stake in Serentica Renewables India 33 Private Limited for Renewable Power Supply

Sanathan Textiles Ltd announced that its wholly owned subsidiary, Sanathan Polycot Private Limited, has entered into a Share Subscription and Shareholders’ Agreement (SSSHA) and a Power Supply and Consumption Agreement (PSCA) with Serentica Renewables India 33 Private Limited. The agreement is to acquire 26% stake in Serentica Renewables India 33 Private Limited in tranches, for sourcing renewable power as a captive consumer for a contracted capacity of 32 MW. The acquisition is subject to customary conditions precedents and regulatory approvals. The primary objective of the acquisition is to secure long-term cost-effective supply of renewable power for the manufacturing operations of Sanathan Polycot Private Limited. The consideration for the acquisition is Rs. 48 Crores, payable by Sanathan Polycot Private Limited towards acquisition of Equity Shares of the Target Entity, in one or more tranches.