HEG will pay Rs 162.05 crore for acquiring an additional stake in BEL
HEG shares gained 2 percent intraday on April 3 after the board approval to increase stake in Bhilwara Energy.
The stock was quoting at Rs 2,109.95, up Rs 21.20, or 1.01 percent on the BSE, at 1216 hours IST.
The board approved proposal to increase the stake of HEG in Bhilwara Energy Limited (BEL), an associate company of HEG, from 29.48 percent to 49 percent, the carbon and graphite product manufacturer said in its filing.
Bhilwara Energy is in generation of hydro and wind power and power consulting business through itself and its subsidiaries. BEL either itself or through its subsidiaries has portfolio of operational 278 MW of Hydro and 34 MW of wind assets.
HEG will pay Rs 162.05 crore for acquiring an additional stake in BEL. Currently promoter/promoter group and HEG holds 85.66 percent stake in BEL.
"Bhilwara Energy is a profit-making entity (at consolidated level) and is expected to generate a return higher than the alternate avenues presently available to HEG Limited," the company said.
