Biocon gains on picking up 26% stake in renewables firm

Biocon rose 0.80% to Rs 423.25 after the company announced the acquisition of 26% stake in Hinduja Renewables Two (HRTPL).

The acquisition is being done for a cash consideration of Rs 5.91 crore in one or more tranches. Biocon expects to complete the acquisition by 15 December 2020.

Incorporated on 25 September 2020, HRTPL is engaged in the business of power generation and will develop a 19.77MW wind power plant (captive) at Raichur District of Karnataka. Since the company incorporated recently, it has no turnover as on date.

The object of the stake acquisition is to enhance the renewable-based power consumption, the company said in a BSE filing made after market hours on Monday.

Biocon is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune.

The company's consolidated net profit fell 23% to Rs 195.4 crore on 11.33% rise in net sales to Rs 1744.8 crore in Q2 September 2020 over Q2 September 2019.

The counter also witnessed bargain buying. The stock has declined 3.24% in the past five sessions to end at Rs 419.9 yesterday, from its recent closing high of Rs 433.95 recorded on 14 November 2020.

On a year-to-date (YTD) basis, the stock has gained 43.89% while the benchmark S&P BSE Sensex has added 7.57% during the same period.

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