Current Hindalco Share Price: A 52-week high of ₹607.65 per share was reached by shares of aluminum manufacturer Hindalco Industries, which were locked in at over 4% upper circuit after the company announced on Wednesday, December 27, that it will acquire a 26% stake in Seven Renewable Power Private Limited (SRPPL).
In a regulatory filing to the stock exchanges, the Aditya Birla Group company announced that it has signed a power purchase agreement and a shareholder’s agreement to acquire a 26% stake in SRPPL. SRPPL would develop and operate a captive power generation plant to supply 100 MW of renewable energy continuously to the company’s smelter in Odisha.
A 26% share in a renewable energy company will be purchased by Hindalco
Hindalco stated that it is now anticipated that the projected power plant’s (solar component) SRPPL connectivity start date will be postponed. “We have decided to substitute the SPV by executing the project with Ayana Renewable Power Four Private Limited (ARPFPL) instead of SRPPL due to above-sighted reason and to achieve our planned project timelines,” Hindalco stated.
Power production and distribution are the activities of ARPFPL. Subsidiaries of Ayana Renewable Power Private Limited are SRPPL and ARPFPL. Accordingly, Hindalco reported in its exchange filing that SRPPL had novated the prior shareholder’s agreement and power purchase agreement to ARPFPL, and that it had signed agreements to that effect.
One to three months is the estimated time frame for finishing the acquisition. The acquisition details state that in order to get a 26% stake in ARPFPL, a total of 16,25,000 equity shares with a face value of ₹10 apiece will be purchased at par.
Current Hindalco Share Price
Hindalco Industries’ shares opened at ₹582.00 on Wednesday and increased by 4.4% to close at ₹607.65, their 52-week high, from ₹579.85 per share on the NSE. On the NSE, shares ended the day 4.25 percent higher at ₹604.50 a share. Earlier today, Hindalco was among the top gainers in the Nifty 50.
For the quarter that concluded in September 2023, Hindalco’s consolidated earnings was ₹2,196 crore, unchanged from the previous year. With a 3.7 per cent year-over-year (YoY) decrease in consolidated revenue from operations to ₹54,169 crore, the main cause of this loss was the drop in world copper prices.
Although the price of raw materials, such as coal, decreased in the fiscal second quarter (Q2FY24), the company was nevertheless able to lower its cost of production and anticipates a slight increase in the three months leading up to December. Experts predict that in the future, domestic markets will fuel aluminum demand.