Hindalco share price locked at 4% upper circuit to hit 52-week high-mark: What drove the rally?
Hindalco Share Price Today: Shares of aluminum manufacturer Hindalco Industries were locked in at over four per cent upper circuit to hit 52-week high-mark of ₹607.65 apiece on the NSE after the company announced that it will acquire a 26 per cent stake in Seven Renewable Power Private Limited (SRPPL) on Wednesday, December 27. The Aditya Birla Group company said in a regulatory filing to the stock exchanges that it has signed shareholder’s agreement and power purchase agreement to acquire 26 per cent stake in SRPPL which would develop and operate captive power generation plant to supply 100 MW round-the-clock renewable energy to company’s smelter located in Odisha.
Also Read: Hindalco Stock Check: At its 52-week high today, is the metal stock a ‘buy’ at this juncture? Hindalco added that the connectivity start date for the proposed power plant (solar component) under SRPPL is now expected to be delayed. ‘’Due to above sighted reason and to achieve our planned project timelines, we have decided to substitute the SPV by executing the project with Ayana Renewable Power Four Private Limited (ARPFPL) instead of SRPPL,'' said Hindalco.
ARPFPL is engaged in generation and supply of power. Both SRPPL and ARPFPL are subsidiaries of Ayana Renewable Power Private Limited.
Hindalco has accordingly signed agreements wherein SRPPL has novated the previous shareholder’s agreement and power purchase agreement to ARPFPL, it added in its exchange filing. The indicative time period for completion of the acquisition is 1-3 months.
According to the details of the acquisition, a total of 16,25,000 equity shares of face value of ₹10 each of ARPFPL to be acquired at par to gain 26 per cent shareholding in ARPFPL. On Wednesday, shares of
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