Praj Industries spurts after collaboration with Gevo, USA

Praj Industries rose 6.96% to Rs 147.45 at 9:20 IST on BSE after the company said it collaborated with Gevo, Inc, USA to offer technology for production of high energy renewable aviation jet fuels.

The announcement was made after trading hours yesterday, 9 April 2019.

Meanwhile, the S&P BSE Sensex was down 54.70 points, or 0.14% to 38,884.52.

On the BSE, 1.20 lakh shares were traded in the counter so far compared with average daily volumes of 2.08 lakh shares in the past two weeks. The stock had hit a high of Rs 148.65 and a low of Rs 142.60 so far during the day. The stock hit a 52-week high of Rs 168 on 7 March 2019. The stock hit a 52-week low of Rs 72.50 on 6 July 2018.

Praj Industries announced that it has signed a construction license agreement (CLA) with Gevo, Inc, USA dated 4 April 2019, to commercialize technology for the production of Isobutanol using sugary-based feedstocks, such as juice, syrup and molasses. Pursuant to the CLA, Praj Industries will provide engineering procurement and construction (EPC) services to 3rd parties using a process design package developed by Praj. This package uses Gevo's proprietary Isobutanol biocatalyst on sugary-based feedstock. Isobutanol derived from said proprietary process is high energy renewable intermediate product that finds application in aviation and racing cars.

To that effect, Praj also signed a memorandum of understanding (MoU) with Gevo Inc. to commercialize Gevo's renewable hydrocarbons products. This includes Gevo's renewable alcohol-to-jet fuel ("ATJ") and renewable isooctane, derived from Gevo's renewable Isobutanol.

Gevo is a next generation "low-carbon" fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products.

On a consolidated basis, net profit of Praj Industries rose 197.88% to Rs 22.43 crore on 33.04% rise in net sales to Rs 330.31 crore in Q3 December 2018 over Q3 December 2017.

Praj Industries is a bio energy process solutions provider with a diversified portfolio offering integrated solutions for bio-energy, high purity water, zero liquid discharge systems, critical process equipment & skids systems and brewery plants.

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