Thermax gains after signing pact to acquire 33% stake in First Energy

Thermax rose 2.72% to Rs 1,066.55 at 10:04 IST on BSE after the company said it has signed an agreement to acquire 33% stake in First Energy, an alternative energy solutions company.

The announcement was made after market hours yesterday, 15 July 2015.

Meanwhile, the S&P BSE Sensex was up 172.06 points or 0.61% at 28,370.35.

On BSE, so far 4,948 shares were traded in the counter as against average daily volume of 4,909 shares in the past one quarter.

The stock hit a high of Rs 1,080 and a low of Rs 1,052 so far during the day. The stock had hit a record high of Rs 1,315 on 11 March 2015. The stock had hit a 52-week low of Rs 790 on 1 August 2014.

The stock had outperformed the market over the past one month till 15 July 2015, surging 10.69% compared with Sensex's 6.06% rise. The scrip had, however, underperformed the market in past one quarter, sliding 3.18% as against Sensex's 2.09% fall.

The large-cap company has equity capital of Rs 23.83 crore. Face value per share is Rs 2.

Thermax said that the agreement envisages stage-wise acquisition of First Energy by Thermax over the next four to six years. First Energy focuses on consumers in the commercial and home cooking segments. Its brand, Oorja, a combination of a 'micro-gasification' stove and biomass-based pellet fuel, is adopted by several customers as a substitute to fossil fuels such as LPG and diesel, Thermax said. First Energy has recorded revenues of Rs 42 crore in 2014-15.

M. S. Unnikrishnan, MD & CEO of Thermax said that the partnership offers Thermax synergy and new opportunities in the commercial space to serve customers with altemative and cost saving solutions.

Meanwhile, shares of Thermax turned ex-dividend today, 16 July 2015 for dividend of Rs 7 per share for the year ended 31 March 2015.

Thermax's net profit rose 24.9% to Rs 132.31 crore on 10.4% growth in net sales to Rs 1498.36 crore in Q4 March 2015 over Q4 March 2014.

Thermax Group provides integrated solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals in 75 countries across the world.

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