Nitin Spinners Acquires 18.12% Stake in CGE II Hybrid Energy for Rs 17.14 crore
By Ankur Chandra | Published at: Jun 2, 2025 05:31 PM IST
Date: June 2, 2025
Nitin Spinners Ltd (NSE: NITINSPIN) has announced the acquisition of an 18.12% equity stake in CGE II Hybrid Energy Private Limited, a newly formed special purpose vehicle (SPV) of Continuum Green Energy Ltd. The ₹17.14 crore deal aims to bolster renewable energy access for its manufacturing units in Rajasthan.
Strategic Intent Behind the Acquisition
The acquisition is part of Nitin Spinners’ strategy to secure captive renewable power for its plants located in Hamirgarh (Bhilwara) and Bhanwaria Kalan (Begun, Chittorgarh). The 18 MW wind-solar hybrid project will qualify as captive consumption under applicable electricity regulations, helping the company meet sustainability targets while reducing energy costs.
“This acquisition enhances our control over reliable, green energy sources critical to our operations. It is aligned with our broader environmental goals and long-term cost efficiency,” the company stated in the filing.
Key Deal Highlights
| Particulars | Details |
|---|---|
| Target Entity | CGE II Hybrid Energy Private Limited |
| Industry | Power Generation (Renewable) |
| Stake Acquired | 18.12% |
| Cost of Acquisition | ₹17.14 crore |
| Nature of Consideration | Cash (via online banking) |
| Date of Incorporation (Target) | December 2, 2021 |
| Transaction Timeline | Expected to close by August 31, 2025 |
| Regulatory Approvals | Not Applicable |
| Related Party Transaction | No |
| Arms-length Basis | Yes |
| Shareholding Prior to Acquisition | 0% |
| Country of Operation (Target) | India |
Financial Overview of Target Entity
CGE II Hybrid Energy is a newly formed SPV and currently has no turnover, profit after tax, or net worth recorded for the past three financial years.
| Financial Year | Turnover (₹) |
|---|---|
| FY24–25 | 0 |
| FY23–24 | 0 |
| FY22–23 | 0 |
About Nitin Spinners
Nitin Spinners Limited, incorporated in 1992 and listed on the NSE, is a leading manufacturer of cotton yarn, knitted fabrics, and woven fabrics. The company has a strong export presence and supplies to global textile majors. With increasing focus on ESG compliance and sustainability, this investment reaffirms its shift toward renewable power integration in manufacturing.
This transaction is expected to improve Nitin Spinners’ energy security, stabilize operational costs, and further strengthen its green manufacturing credentials in the years ahead.
REF: https://nsearchives.nseindia.com/corporate/xbrl/REG30_Restructuring_1462099_02062025030143_WEB.xml
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