Solar Penny Stock Jumps After Acquisition of a Subsidiary Company
The company has a market cap of over Rs 200 crore and the stock is up by 26 per cent from its 52-week low of Rs 65.01 per share.
Bhagyanagar India Limited has announced the acquisition of a 51 per cent stake in Surana Electrix Private Limited, making it a subsidiary company, as per Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Surana Electrix Private Limited, incorporated on October 24, 2020, is involved in the manufacture of motor vehicle parts and accessories, as well as trading, distribution, and manufacturing of solar energy-related products, with the intent to execute solar projects. The turnover of Surana Electrix Private Limited for the financial years ending March 2023 and March 2024 was Nil.
The acquisition involved a cash consideration of Rs 5,10,000 for 51,000 equity shares at Rs 10 per share. Surana Electrix Private Limited is considered a related party to Bhagyanagar India Limited. The acquisition is deemed to be at arm's length, and except for the related party status, the promoters, promoter group, and group companies of Bhagyanagar India Limited have no interest in the acquired entity. The primary objective of this acquisition is to expand Bhagyanagar India Limited's presence in the solar energy sector. No specific governmental or regulatory approvals were required, and the acquisition was completed with the said cash transaction.
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Additionally, the company has been awarded a Letter of Award for a 53 MW Solar Power Generator project in Maharashtra, under the Mukhyamantri Saur Krushi Vahini Yojana 2.0, part of the PM-KUSUM Scheme. The project, granted by MSEDCL, represents an overall investment of Rs 245 Crore. The awarded tariff is Rs. 3.09 per kWh, which includes an Rs. 1.05 Crore per MW subsidy from the Government of India as Central Financial Assistance. The project must be commissioned within 18 months of the LOA, and the power purchase agreement with MSEDCL will span 25 years from the project's commissioning date.
Bhagyanagar India Ltd, incorporated in 1985, manufactures copper and copper alloy products, serving primarily Original Equipment Manufacturers (OEMs). Beyond its core copper business, the company has diversified into telecom and solar products, real estate, and the non-conventional energy sector with a solar & wind power project.
On Thursday, shares of Bhagyanagar India Ltd jumped 10.2 per cent to Rs 82 per share from its previous closing of Rs 74.40 per share. The company has a market cap of over Rs 200 crore and the stock is up by 26 per cent from its 52-week low of Rs 65.01 per share.
Disclaimer: The article is for informational purposes only and not investment advice.