Sarda Energy & Mineral shares gain 5% as arm receives power procurement nod

Sarda energy & mineral share price today: Shares of Sarda Energy and Minerals surged over 5 per cent, logging an intraday high of ₹467 on Friday, after the company's subsidiary firm, Chhattisgarh Hydro Power LLP, received an approval from the state power distribution company to procure power from the Rehar-1 small hydro power project.

 

At 10:45 AM, Sarda Energy & Mineral shares were trading at ₹456.35, up by 3.36 per cent on the National Stock Exchange. In comparison, the Nifty50 was down by over 150 points or 0.61 per cent, quoting 25,198. So far this calendar year, shares of the Sarda group firm have plunged over 8 per cent.

Power procurement deal

As per the exchange filing, Chhattisgarh Hydro Power LLP was granted an in-principle approval for procuring power from 3x 8.3 megawatt (MW) Rehar-1 small hydro power project on a long-term basis. "The company has received in-principle approval from Chhattisgarh State Power Distribution Company Ltd. for procuring power from 3x 8.3 MW Rehar-1 small hydro power project on a long term basis; and has commenced commercial operation of Rehar-1 small hydro power project," the exchange filing read. 

The Chhattisgarh Hydro Power LLP was incorporated on May 24, 2005, as a private company and was later turned into an LLP on September 17, 2010. 

About Sarda energy & mineral

The company, formerly known as Raipur Alloys and Steel Ltd., was established on June 23, 1976. The company was acquired by the Sarda Group in 1979 and renamed Raipur Alloys & Steel in 1985. In 2006, it was rebranded as Sarda Energy & Minerals Ltd. The company operates an integrated steel manufacturing unit with facilities for ferro alloys production, supported by a captive thermal power plant. The company also produces sponge iron for captive use, which is further processed into rolled products for commercial sale. In addition to its core steel business, Sarda Energy is also involved in the power sector, including hydropower projects executed via special Purpose Vehicles (SPVs).