Praj Inds: Buyout surge

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Ethanol equipment maker, Praj Industries advanced 8.4 per cent to Rs 474.45 on the Bombay Stock Exchange on reports that it was eyeing a buyout in Brazil. According to reports, Praj Industries has set aside Rs 40 crore for this purpose.

The stock of Praj Industries jumped to a lifetime high of Rs 478 in early trade as buying continued. The stock has been on a sustained uptrend in the last few weeks. From a low of Rs 346.10 on 2 April 2007, it surged to Rs 462.35 by 19 April 2007.

Brazil discovered ethanol as an alternative to gasoline. On 19 April 2007, the board of directors of Praj Industries approved a proposal to float a joint venture company with Aker Kvaerner. While Praj will hold 60%, Aker Kvaerner Process will hold 40% of the shareholding in the joint venture (JV).

Praj Industries is a pioneer in bio-fuel technology and waste-water treatment plants. Around 80 per cent of Praj's revenues come from the distillery business, while the rest comes from brewery and other businesses. Praj Industries plans to spend around Rs 100 crore in the next few years on R&D, capacity expansion and acquisitions.