Hindustan Zinc rises on inking agreement with SPV for renewable power supply
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Hindustan Zinc is currently trading at Rs. 288.65, up by 3.30 points or 1.16% from its previous closing of Rs. 285.35 on the BSE.
The scrip opened at Rs. 288.50 and has touched a high and low of Rs. 290.15 and Rs. 285.35 respectively. So far 30923 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 407.90 on 18-Oct-2021 and a 52 week low of Rs. 242.40 on 06-Jul-2022.
Last one week high and low of the scrip stood at Rs. 289.00 and Rs. 271.00 respectively. The current market cap of the company is Rs. 122470.87 crore.
The promoters holding in the company stood at 64.92%, while Institutions and Non-Institutions held 33.39% and 1.69% respectively.
Hindustan Zinc has executed long term renewable Power Delivery Agreement (PDA) for upto a capacity of 200 MW with SPV, namely Serentica Renewables India 4. The company will hold 26% of equity in the Serentica Renewables India 4 created for Rs 350 crore for long term RE power delivery. The remaining equity in the Serentica Renewables India 4 will be held by affiliated companies. This project will be funded on a 70:30 debt to equity basis.
The equity infusion will be at par as per Investment Agreement and the tariff rate agreed has been independently benchmarked by a third party with reference to prevailing market tariff for RE power and a cost-plus model prescribed by the Central Electricity Regulatory Commission. Serentica Renewables India 4 is expected to commission the projects within 24 months of signing the PDA.
Hindustan Zinc, the world’s second biggest zinc producer, operates the world’s third largest open-pit mine, and world’s largest Zinc Mine in Rampura Agucha, Rajasthan.
