Here's why AuSom Enterprise stock hit 5% upper circuit today; details

AuSom Enterprise share price: Shares of AuSom Enterprise soared up to 5 per cent to hit the upper limit at Rs 104.30 per share. 

 

The uptick in AuSom Enterprise share price came after the company announced that it has bagged an order from Gujarat Urja Vikas Nigam Limited. 

 

In an exchange filing, AuSom Enterprise, said, “We hereby inform you that Ausom Enterprise Limited have received Letter of Intent from Gujarat Urja Vikas Nigam Limited dated 11/11/2024 for procurement of Power through Competitive bidding process.”

 

Ausom Enterprise Limited will establish a wholly-owned subsidiary as a Special Purpose Vehicle (SPV), named either Ausom Power Private Limited, Ausom Energy Private Limited, or another name pending approval by the Ministry of Corporate Affairs. This SPV will be incorporated in India and registered with the Registrar of Companies in Ahmedabad, Gujarat.

 

The SPV will be responsible for supplying Solar Photovoltaic (PV) Power with a project capacity of 50 MW, under a 25-year agreement at an applicable tariff rate of Rs. 2.55 per kWh.

 

Incorporated in 1984, Ausom Enterprise Ltd. is a part of the Mandalia Group, primarily involved in the financial and commodity markets and the manufacturing and trading of jewellery. 

 

The company operates in various sectors, including commodities trading, bullions, gold jewellery, diamonds, derivative transactions, shares and securities, and mutual fund units.

 

In FY23, Ausom Enterprise Ltd. approved related-party transactions worth Rs 1,000 crore or up to 10 per cent of its annual consolidated turnover with Zaveri And Company Pvt. Ltd. and Swadeshi Distributors LLP. 

 

The company also has several joint ventures in diverse areas such as hydroelectric power generation, waste management, real estate, and precious metal refining, further expanding its business footprint.

 

The market capitalisation of AuSom Enterprise is Rs 142.09 crore, according to BSE. 

 

The 52-week high of AuSom Enterprise share is Rs 185.75 while its 52-week low is Rs 64.05 per share. 

 

At 9:55 AM, AuSom Enterprise continued to remain locked in the 5 per cent upper circuit. In comparison, BSE Sensex was trading flat at 79,493.26 levels.