Finolex Industries shares fall on deal to procure solar power in Ratnagiri

Shares of Finolex Industries Limited declined over a percent to Rs 222 in morning trade on March 4 after the company announced that it has entered into a share purchase agreement with Hinduja Renewables One Pvt Ltd (HROPL) and Hinduja Renewables Energy Pvt Ltd to purchase solar power.

“To enhance the use of renewable power, Finolex will acquire 15.30 percent of the equity share capital of HROPL to procure solar power under the group captive generation mechanism. Under these, the company shall be able to procure 8.36 MW of green power for 25 years, with 15 years lock-in,” it said in a regulatory filing.

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According to the agreement, Finolex Industries may sell the shares at face value only to HROPL or its nominee upon completion of the project term. About Rs 3.14 crore will be invested in subscribing to the equity share capital of HROPL.

HROPL is involved in developing, constructing, operating, and maintaining renewable energy-based power plants in India. Hinduja Renewables Energy Private Limited is the majority shareholder in the company.

The company reported a 20 percent year-on-year (YoY) rise in net profit at Rs 95.4 crore for the third quarter that ended December 31, 2023. The company’s revenue from operations rose 9.3 percent to Rs 1,019.7 crore.
At the operating level, EBITDA jumped 30.6 percent to Rs 120 crore in the third quarter of this fiscal over Rs 91.9 crore in the corresponding period in the previous fiscal.

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