Auto ancillary company enters into power purchase agreement (PPA) with AMPIN Energy C&I Thirty Three & AMPIN Energy C&I Thirty Four
The stock is up by 57 per cent from its 52-week low of Rs 381.90 per share.
On Tuesday, shares of Varroc Engineering Ltd surged 0.74 per cent to Rs 590.85 with an intraday high of Rs 601.75 and an intraday low of Rs 587.05. The stock’s 52-week high is Rs 717 per share and its 52-week low of Rs 381.90. The shares of the company saw a spurt in volume by more than 1.33 times on BSE.
Varroc Polymers Limited, a subsidiary of Varroc Engineering Ltd, has entered into a Power Purchase Agreement with AMPIN Energy C&I Thirty Three Private Limited and AMPIN Energy C&I Thirty Four Private Limited (collectively SPVs). Through this agreement, Varroc Polymers will acquire a 26 per cent stake in the SPVs for a total consideration of up to Rs 9,72,00,000 (approximately USD 11.6 million).
The SPVs are newly incorporated entities established by AMPIN Energy Transition Private Limited, a leading renewable energy company in India. These SPVs will develop and manage renewable power plants with a combined captive capacity of 27 MWp (17.6 MWac) in Maharashtra. This investment will enable Varroc Polymers to source clean solar power for its manufacturing facilities in the state, reducing its carbon footprint and contributing to a more sustainable future. The acquisition is expected to be completed by January 31, 2025.
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Varroc Engineering Ltd incorporated in 1988, is the flagship company of the Aurangabad-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe.
The company has a market cap of over Rs 9,000 crore. As of June 2024, promoters hold the largest stake in the company, with 75 per cent ownership. DIIs own 12.74 per cent, followed by FIIs at 4.24 per cent. The remaining 8.04 per cent is owned by the public. The stock is up by 57 per cent from its 52-week low of Rs 381.90 per share. Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.