Intimation of Acquisition under regulation 30 of the SEBI (listing Obligations and Disclosure Requirements), Regulations 2015
M&A
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 27 Mar 2026, 12:50 PM IST · BSE ID: 22d736dc-3b92-43ed-87ee-d45fc2aa1a23
View Original BSE Filing (PDF)
💡
In Simple Terms
Nitin Spinners is buying a minority stake in a new renewable energy company to secure 10 MW of wind-solar hybrid power for its textile mills.
🤖 AI Summary
- Investment Committee approved 6.66% equity stake acquisition in CGE II Hybrid Energy Private Limited
- Cash consideration: Rs. 95,202,020 paid via online banking; Power Supply Agreement and Share Purchase Agreement execution approved
- Target secures 10 MW renewable power supply for Nitin Spinners' Rajasthan textile plants under captive consumer arrangement
- CGE II incorporated 2 December 2021, subsidiary of Continuum Green Energy Limited; zero turnover reported FY23-25
- Transaction completion expected on or before 30 September 2026 subject to customary conditions
🔢 Key Numbers — exact figures from BSE filing, not rounded
Equity Stake Acquired
6.66%
Cash Consideration
Rs. 95,202,020
Renewable Power Secured
10 MW
Target Authorized Share Capital
Rs. 5,72,98,72,727
Target Paid Up Capital
Rs. 1,42,80,30,303
Target Incorporation Date
2 December 2021
Expected Completion Date
on or before 30 September 2026
🏢 How This Affects the Company
Acquisition enables guaranteed 10 MW renewable power supply for Nitin Spinners' plants at Bhanwaria Kalan, Begun, and Chittorgarh, Rajasthan, securing captive consumer status and reducing grid dependence.
Cash outlay of Rs. 95,202,020 for 6.66% equity stake; benefits from lower or stable power costs through captive renewable supply once operational by 30 September 2026.
Secures long-term renewable energy supply critical for textile manufacturing operations; reduces operational risk from grid supply volatility and energy cost fluctuations.
Target company (CGE II) shows zero turnover across FY23-25 as newly formed SPV; transaction completion risk until 30 September 2026; power supply performance depends on successful project execution.
👥 What This Means For Shareholders
✅
Action Required
No shareholder action required at this stage. Monitor for transaction completion filing by 30 September 2026.
👤
Who Is Affected
All shareholders exposed to textile operations' energy cost structure benefit from secured long-term 10 MW renewable supply; cash outlay of Rs. 95,202,020 represents capital deployment affecting free cash availability.
🔍
Management Signal
Management prioritizes operational energy security and cost stability through direct renewable power supply control rather than relying on merchant power or grid tariffs.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
30 September 2026: Monitor for transaction completion and Reg 31A(10) promoter reclassification filing if stake rises above threshold.
Power Supply Agreement execution confirmation: Track for any amendments or delays affecting 10 MW renewable supply operationalization timeline.
CGE II project commissioning updates: Watch for operational commencement of Wind Solar Hybrid project at Rajasthan locations.
MEDIUM RISK
Target SPV pre-revenue status; transaction contingent on customary conditions; completion 6 months away creates execution timeline risk.
💡 Investor Takeaway
Nitin Spinners committed Rs. 95,202,020 for 6.66% stake in CGE II Hybrid Energy to secure 10 MW captive renewable power supply for Rajasthan plants. Transaction, expected completion by 30 September 2026, reduces energy cost volatility for textile operations but depends on successful project execution by pre-revenue SPV.
⚖️ Strengths & Concerns
✅ Positives
- Captive renewable power supply secures energy independence and reduces exposure to grid tariff volatility for textile operations.
- Parent company Continuum Green Energy Limited brings established renewable energy expertise and operational capability to ensure project execution.
⚠️ Concerns
- Target entity shows zero turnover in FY23, FY24, FY25 as pre-revenue SPV; no operating history or financial track record yet.
- Transaction completion contingent on customary conditions; 30 September 2026 timeline introduces execution and completion risk.