Mahindra CIE Automotive soars on hiking investment in Sunbarn
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Mahindra CIE Automotive is currently trading at Rs. 339.00, up by 12.60 points or 3.86% from its previous closing of Rs. 326.40 on the BSE.
The scrip opened at Rs. 338.35 and has touched a high and low of Rs. 341.90 and Rs. 329.50 respectively. So far 26676 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 341.90 on 19-Dec-2022 and a 52 week low of Rs. 164.00 on 23-Mar-2022.
Last one week high and low of the scrip stood at Rs. 341.90 and Rs. 282.05 respectively. The current market cap of the company is Rs. 12380.92 crore.
The promoters holding in the company stood at 74.96%, while Institutions and Non-Institutions held 14.92% and 10.10% respectively.
Mahindra CIE Automotive has further subscribed 2,40,000 equity shares of Rs 10 each of Sunbarn Renewables (Sunbarn) which will constitute 26.12% of the post-issue paid-up capital of Sunbarn. Sunbarn is an associate of the Company and accordingly the transaction would fall within related party transaction.
Sunbarn is incorporated as a special purpose vehicle by Cleantech India OA (Cleantech), a company incorporated under the laws of Singapore. Cleantech develops, finances, constructs, owns and operates solar photovoltaic projects.
Cleantech has set-up and commissioned captive solar plants and is supplying captive power to Company’s plants of Forgings Chakan and Magnetics Products Division, Bhosari. Sunbarn is setting up an additional captive solar plant of the capacity of 6MWp for supplying additional captive power to Company’s plant at Forgings Chakan.
In order to qualify as a captive consumer, the Company must hold atleast 26% of the total equity capital of the Solar Generating Plant(s). Accordingly, the investment is essentially to qualify as a captive consumer and thereby further optimising the power cost at Company’s plant at Forgings Chakan.
Mahindra CIE is engaged in the business of production and sale of automotive components to original equipment manufacturers and other customers (including leading suppliers of components) in India and overseas.
