Triveni Turbine surges 5%, hits new high on fixing record date for buyback

Shares of Triveni Turbine hit a record high of Rs 308.45, as they rallied 5 per cent on the BSE in Wednesday’s intra-day trade after the company fixed the record date for proposed share buyback via tender offer. The stock surpassed its previous high of Rs 307.15, touched on December 9, 2022.

“The company has fixed Friday, December 23, 2022, as the record date for the purpose of determining the entitlement and the names of the holders of the equity shares who shall be eligible to participate in the buyback,” Triveni Turbine said in an exchange filing.

On November 2, the board of directors of Triveni Turbine had approved a proposal to buy back equity shareholders of the company upto 5.43 million equity shares at a price of Rs 350 per share for an aggregate amount not exceeding Rs 190 crore, through tender offer on proportionate basis.

Triveni Turbine is a focused and growing corporation having core competency in the area of steam turbines manufacturing up to 100 MW size; a dominant player in industrial steam turbines up to 30 MW in India and also among the leading manufacturers of industrial steam turbines in >5 to 30 MW range globally.

As on September 2022, the company’s total consolidated outstanding order book stood at Rs 1,137 crore which is higher by 37 per cent when compared to the previous year. The export outstanding order book has grown more than 100 per cent over the corresponding period in the last year and stood at Rs 491 crore, contributing to 43 per cent of the closing order book.

With strong focus in enquiry generation and aggressive coverage plans, both in domestic and international markets, the management expect to convert large opportunities in the imminent future.

The order inflow momentum has seen a sharp upsurge since FY22 led by revival in industrial capex in India, rising renewable & WTE capex in Europe, and process co-gen & biomass driven capex in South East Asia. The renewed capex cycle will act as a key catalyst for TRIV’s growth (FY22-25E revenue/earnings CAGR at 24 per cent/56 per cent), further accentuating its superior financial franchise, according to analysts Centrum Broking.