This Textile Company Secures Renewable Energy Deal; Stock Surges Over 4%

On April 21, 2026, Nandan Denim's share price was trading at Rs 3.06 as of 3:11 PM, up by 4.41 per cent compared to the previous close of Rs 2.95. The broader market also remained positive, with the Nifty gaining 0.88 per cent during the session.

The stock movement comes after the company announced a strategic step towards renewable energy sourcing. The board has approved entering into a Share Transfer cum Shareholders’ Agreement with Opera Vayu (Narmada) Private Limited and Shivman Wind Energy Private Limited.

Renewable Energy Acquisition Plan
As part of the agreement, the company will acquire a 6.1 per cent equity stake in the special purpose vehicle (SPV), which is involved in generating wind and Solar power. This investment is being made under the captive power route as per the provisions of the Electricity Act, 2003.
The company plans to invest Rs 4,00,20,960 in the SPV to acquire 40,02,096 equity shares with a face value of Rs 10 each. Additionally, it will provide an irrevocable Bank guarantee of Rs 1.90 crore to cover three months of power billing.

Power Sourcing and Cost Benefits
Through this arrangement, the company will procure 4.3 MW of power from a larger renewable energy project with a combined capacity of wind and solar generation. The move is aimed at reducing power costs at its Bareja manufacturing plant. The agreement is expected to ensure access to renewable energy at competitive rates for a long-term period of 25 years, which could improve operational efficiency and cost structure over time.

About the SPV
Opera Vayu (Narmada) Private Limited, incorporated in August 2022 and based in Jamnagar, Gujarat, is a special purpose vehicle established for setting up a wind-solar hybrid power project. The entity operates in the renewable energy generation and transmission segment.

Timeline and Structure
The acquisition is expected to be completed by June 30, 2026. The transaction will be executed through cash consideration, and the company will hold a minority stake as part of the user group under the captive power structure.

About the Company
Nandan Denim Ltd, incorporated in 1994, is engaged in the manufacturing of denim fabrics, shirting materials, yarn, and other textile products. The company has a diversified product portfolio catering to both domestic and international markets.

Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.