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Punj Lloyd advances as subsidiary divests three operating solar projects

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Capital Market
Last Updated : Oct 24 2016 | 1:47 PM IST

Punj Lloyd rose 2.37% to Rs 23.80 after the company's wholly owned subsidiary executed definitive agreements with India Infrastructure Fund to divest three operating solar projects in Punjab and Rajasthan.

The announcement was made on Saturday, 22 October 2016.

Meanwhile, the BSE Sensex was up 117.82 points, or 0.42%, to 28,195

On BSE, so far 3.87 lakh shares were traded in the counter, compared with average daily volume of 8.35 lakh shares in the past one quarter. The stock hit a high of Rs 24.25 and a low of Rs 23.70 so far during the day. The stock hit a 52-week high of Rs 31.65 on 5 January 2016. The stock hit a record low of Rs 17.65 on 7 June 2016. The stock had underperformed the market over the past 30 days till 21 October 2016, falling 6.44% compared with 2.42% decline in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 11.51% as against Sensex's 0.99% rise.

The small-cap company has equity capital of Rs 66.42 crore. Face value per share is Rs 2.

Punj Lloyd said that the company's wholly owned subsidiary Punj Lloyd Infrastructure (PLIL) has executed definitive agreements with India Infrastructure Fund II (a Sebi registered category 1 alternative investment fund represented by its investment manager IDFC Alternatives) to divest three operating solar projects aggregating to 45 megawatts (MW) located in Punjab and Rajasthan subject to customary approvals and other conditions precedent.

As per the transaction, PLIL will divest its entire shareholding in its subsidiaries that hold the three projects. Punj Lloyd Solar Power (PLSPL) owns and operates a 5 MW solar power project selling power under a 25-year power purchase agreement with NTPC Vidyut Vyapar Nigam. PL Surya Urja (PLSUL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation and PL Sunshine (PLSL) owns and operate a 20 MW solar power project selling power under a 25-year power purchase agreement with Punjab State Power Corporation. The transaction is expected to be completed once customary closing conditions and approvals are obtained, Punj Lloyd said.

Punj Lloyd reported net loss of Rs 211.39 crore in Q1 June 2016, lower than net loss of Rs 581.84 crore in Q1 June 2015. Total income rose 45.5% to Rs 1010.17 crore in Q1 June 2016 over Q1 June 2015.

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Punj Lloyd is a diversified international conglomerate offering engineering procurement construction (EPC) services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

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First Published: Oct 24 2016 | 1:23 PM IST

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