Torrent Pharmaceuticals Ltd. announced on Wednesday that it will acquire a 26 per cent equity stake in Torrent Urja 27 Private Ltd., a special purpose vehicle created for a captive hybrid power project in Gujarat.
The investment, valued at ₹7.92 crore, will be carried out through a share subscription and shareholders’ agreement signed on 10 September.
Torrent Urja is currently a wholly owned subsidiary of Torrent Green Energy Pvt. Ltd. The company has been established to build a solar and wind hybrid project. With this acquisition, Torrent Pharma aims to increase the use of renewable energy in its operations while fulfilling regulatory requirements under India’s electricity laws.
The project is expected to be completed within 18 to 20 months.
As part of the deal, Torrent Pharma will subscribe to 79.19 lakh Class A equity shares of Torrent Urja at a price of ₹10 per share. The company stated that although the transaction is classified as a related-party deal, it is being executed on an arm’s-length basis.
This move aligns with Torrent Pharma’s broader strategy of strengthening its position in the healthcare industry. Earlier in June, the company announced a ₹19,500 crore acquisition of JB Chemicals and Pharmaceuticals, a major deal that will make it the second most valuable pharmaceutical company in India. The acquisition includes a 46.39 per cent stake from the promoters worth around ₹11,917 crore, along with an additional open offer as per market listing rules.
On the financial front, Torrent Pharma reported strong earnings in the June quarter. The company posted a 19.9 per cent rise in net profit year-on-year at ₹548 crore, supported by revenue of ₹3,178 crore. Margins improved during the period, aided by its branded generics portfolio and its leadership in chronic therapies such as cardiovascular and central nervous system treatments.
Despite these developments, shares of Torrent Pharma closed 1.23 per cent lower at ₹3,598.40 on the National Stock Exchange on Wednesday, just before the company’s earnings release.
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