Rs 1,600 crore LNG project: Penny stock under Rs 30 to keep under radar as the company enters a joint venture with Modern Fuel Technologies
The stock is up by 77 per cent from its 52-week low of Rs 15.45 per share.
Spacenet Enterprises India Ltd and Modern Fuel Technologies have joined forces to invest a substantial Rs 1600 crore in a joint venture aimed at propelling India's LNG infrastructure. As India's economy accelerates, projected to be among the top three globally within the next 15 years, the energy demand is skyrocketing. This growth is accompanied by a decisive shift towards cleaner energy sources, with natural gas emerging as a preferred alternative to high-polluting fuels. This partnership is strategically positioned to capitalize on this trend by establishing a robust LNG network across the country.
The joint venture's ambitious roadmap includes the development of 20 LNG gas stations and fuel retail outlets in the initial phase (FY 2025-27), followed by an expansion to a nationwide network of 180 such stations. Natural gas offers a compelling advantage over traditional fuels, boasting 30-40 per cent higher efficiency and generating 40 per cent less carbon dioxide compared to coal and 30 per cent less than oil. Furthermore, as the world races towards net zero emissions, LNG is poised to play a pivotal role as a 'feedstock' for low-carbon hydrogen production. The venture also encompasses plans to retrofit heavy commercial vehicles to utilize LNG, contributing to a reduction in carbon emissions and improved energy efficiency.
With global LNG demand projected to surge by over 50 per cent by 2040, according to the Shell LNG Outlook 2024, India's role is increasingly significant. In 2022, the country imported 20.79 million metric tonnes per annum (MMTPA) of LNG, accounting for 5 per cent of the global trade. This joint venture, backed by a major Russian bank, will see Spacenet holding a substantial 15-25 per cent stake, significantly enhancing the company's value proposition. By combining their expertise, the partners aim to drive the growth of clean energy infrastructure, supporting India's transition to a sustainable and resilient energy future.
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About the Company
Spacenet Enterprises India Ltd is a fintech company established in 2010 that specializes in trade and trade finance solutions for traders, SMEs, and MSMEs. They develop software tools and platforms for commodities trading, invest in and trade various commodities, and offer trade finance services. Essentially, Spacenet aims to empower businesses in the commodities market through technology and financial solutions.
On Monday, shares of Spacenet Enterprises plunged 10.35 per cent to Rs 27.36 per share from its previous closing of Rs 30.52. The stock is up by 77 per cent from its 52-week low of Rs 15.45 per share. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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