HEG buys additional stake in associate Bhilwara Energy

HEG Limited is set to increase its stake in its associate company named Bhilwara Energy Limited (BEL). Currently, HEG’s stake in BEL is 29.48 per cent which will be increased to 49 per cent.

BEL either itself or through its subsidiaries has a portfolio of operational 278 MW of hydro and 34 MW of wind assets.

HEG’s Chairman, Managing Director & CEO (promoter), Ravi Jhunjhunwala is the non-executive Chairman of BEL and HEG’s promoter director (non-executive), Riju Jhunjhunwala is managing director of BEL. The promoter and promoter group along with HEG hold 85.66 per cent stake in BEL.

The acquisition process is expected to get completed within FY20. HEG would be paying cash consideration of Rs. 162.05 crore for acquiring additional 3,23,51,004 equity shares to take its stake to 49 per cent.

BEL is in Generation of Hydro & Wind Power and power consulting business through itself and its subsidiaries. It is a profit-making entity (at consolidated level) and is expected to generate a return higher than the alternate avenues presently available to HEG Limited.

BEL was incorporated on May 17, 2006. In FY18, it generated revenue of Rs. 317.72 crore while during the period 9MFY19, it posted revenue of Rs. 337.92 core.

On Wednesday, the stock of HEG opened gap up at Rs. 2,128 per share from its previous close of Rs. 2,088.75.