Orient Green Power Company rose 2.05% to Rs 11.45 at 11:32 IST on BSE after the company said its board has approved entering exclusive discussions with IL&FS to explore a merger between wind energy assets of both companies.
The announcement was made after market hours yesterday, 19 January 2017.Meanwhile, the BSE Sensex was down 103.75 points, or 0.38%, to 27,204.85.
On the BSE, so far 6.77 lakh shares were traded in the counter, compared with average daily volumes of 89,686 lakh shares in the past one quarter. The stock had hit a high of Rs 11.95 and a low of Rs 11.38 so far during the day.
The stock hit a 52-week high of Rs 15.10 on 2 February 2016. The stock hit a 52-week low of Rs 7.84 on 9 November 2016.
Orient Green Power Company (OGPL) announced that its board approved entering into exclusive discussions with IL&FS Wind Energy to evaluate a potential merger of the wind energy generation businesses of both entities. The resultant merged entity will have 1.2 gigawatt (GW) of operating wind capacity, and will be by far the largest listed renewable energy company in India.
OGPL is in the process of demerging its wind and biomass entities into two separate companies, viz: OGPL (wind) and Bio-bijlee Green Power (biomass) respectively. Subsequent to the demerger, OGPL will have an operating wind capacity of 425 megawatts (MW) in the financial year ending March 2017 (FY 17) with an additional 43 MW under construction which will augment capacity of the combined entity in FY 18. IL&FS Wind has an operating capacity of 775 MW in FY 17. IL&FS is also developing an additional 228 MW which the merged entity will be in a strong position to acquire.
Both companies have entered into a non-binding agreement with an exclusivity period of 90 days. At this stage, the companies would like to clarify that any potential outcome is subject to due diligence, definitive documentation and approvals by regulators, creditors, shareholders and other stake holders.
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On a consolidated basis, Orient Green Power Company reported net profit of Rs 82.88 crore in Q2 September 2016 as against net loss of Rs 21.32 crore in Q2 September 2015. Net sales rose 11.62% to Rs 154.81 crore in Q2 September 2016 over Q2 September 2015.
Orient Green Power Company an independent operator and developer of renewable energy power plants in India. Currently, the company's portfolio includes biomass, biogas, wind energy and small hydroelectric projects at various stages of development.
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