Bharat Forge shines on inking agreements to acquire 26% equity stake in AMHVPL
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Bharat Forge is currently trading at Rs. 749.75, up by 20.50 points or 2.81% from its previous closing of Rs. 729.25 on the BSE.
The scrip opened at Rs. 733.00 and has touched a high and low of Rs. 756.70 and Rs. 725.65 respectively. So far 5216 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 848.00 on 10-Nov-2021 and a 52 week low of Rs. 555.60 on 19-Apr-2021.
Last one week high and low of the scrip stood at Rs. 767.00 and Rs. 711.30 respectively. The current market cap of the company is Rs. 33953.05 crore.
The promoters holding in the company stood at 44.76%, while Institutions and Non-Institutions held 43.54% and 11.69% respectively.
Bharat Forge has entered into a Power Purchase Agreement and Share Subscription and Shareholders' Agreement with Avaada MHVidarbha (AMHVPL) to purchase solar power on a Single Captive User basis thereby agreeing to acquire 26% equity stake for around Rs 11.38 crore in AMHVPL. The investment is being made in compliance with the provisions of Electricity Act, 2003 and rules made there under for supply of solar power of capacity upto 32.50 MW DC equivalent to 25.0 MW AC per annum.
The completion of the acquisition is subject to the receipt of all consents, permissions required to be obtained by AMHVPL from regulatory authority for open access for captive consumption of electricity. The investment will be made by the company to get access to renewable energy which will benefit the company from a cost saving perspective. Upon completion of acquisition, AMHVPL will become an associate of the company.
Bharat Forge is engaged in manufacturing of close die and open die forging, crankshafts, front axle beams, steering knuckle, connecting rods, rocker arm and many more components.
