Indian Biopharma Company to Invest Rs 6,09,58,836 In Clean Max Everglades Private Ltd For The Installation Of A Hybrid Renewable Energy Plant In Gujarat
With a market capitalisation of Rs 17,333 crore and a PE ratio of 52.8x, the company trades at a premium compared to the industry PE of 24.2x. The company has ROCE of 27.9 per cent and ROE of 20.9 per cent.
Shares of Concord Biotech Ltd zoomed more than 8 per cent on Tuesday following development.
Concord Biotech Ltd has announced an investment of Rs 6,09,58,836 in Clean Max Everglades Private Ltd for the installation of a hybrid renewable energy plant in Gujarat. The decision was approved in the company’s board meeting held on March 4, 2025. The investment will be made through a rights issue subscription, enabling Concord Biotech to acquire a 26 per cent equity stake in Clean Max. The renewable energy plant will have a wind capacity of 6.6 MW and a solar capacity of 3.3 MWp DC, catering to the energy needs of Concord Biotech’s plant in Dholka, Ahmedabad.
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The investment aligns with Concord Biotech’s sustainability goals and efforts to address environmental challenges. By transitioning to renewable energy, the company aims to reduce its carbon footprint and contribute to climate change mitigation. In addition to environmental benefits, this initiative is expected to provide long-term financial advantages by lowering energy costs and ensuring compliance with evolving environmental regulations.
Clean Max Everglades Private Limited was incorporated on October 7, 2024, as a special-purpose vehicle to develop a captive power generation facility under the Group Captive Power Policy. It is currently in the process of setting up the renewable energy plant and has not yet commenced commercial operations. The company’s authorized share capital as of February 28, 2025, stands at Rs. 30,00,000, with a paid-up share capital of Rs. 1,00,000.
This investment by Concord Biotech falls under the category of a related party transaction, as Clean Max is an associate company. However, the transaction is conducted at arm’s length, ensuring no direct interest from the promoter or promoter group. The investment will be made through cash consideration, and the equity shares against this investment are expected to be allotted within 30 days.
With this move, Concord Biotech strengthens its commitment to environmental responsibility while enhancing operational efficiency. The hybrid renewable energy plant is expected to support the company’s long-term growth strategy by ensuring a stable and cost-effective energy supply.
About Company
Incorporated in 1984, Concord Biotech Limited is an India-based R&D-driven biopharma company and manufacturer of fermentation-based APIs across immunosuppressants and oncology.
With a market capitalisation of Rs 17,333 crore and a PE ratio of 52.8x, the company trades at a premium compared to the industry PE of 24.2x. The company has ROCE of 27.9 per cent and ROE of 20.9 per cent.
Investors should keep an eye on this Mid-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.