Solarium Green Energy jumps 5% on two new development; check details

Solarium Green Energy shares rose 4.8 per cent on Thursday and registered an intra-day high at ₹395.1 per share on BSE; here's why

Solarium Green Energy shares rose 4.8 per cent on Thursday and registered an intra-day high at ₹395.1 per share on BSE. At 11:11 AM, on BSE, Solarium Green Energy’s share price was trading 1.06 per cent higher at ₹381 per share. In comparison, the BSE Sensex was up 0.48 per cent at 80,955.21.

 

The market capitalisation of the company stood at ₹794.37 crore. The 52-week high of the stock was at ₹484 per share, and the 52-week low was at ₹202.  READ STOCK MARKET UPDATES LIVE

Why did Solarium Green Energy shares rise in trade? 

The buying on the counter came after two new updates. First, Care Ratings assigned CARE BBB- with a ‘Stable’ outlook to the company’s long-term bank facilities amounting to ₹50 crore. For long-term / short-term bank facilities totalling ₹47 crore, the rating assigned is "CARE BBB-; Stable / CARE A3".

 

In another development, the company signed a Licensing Agreement for Transfer of Technology (LAToT) with the Defence Research & Development Organisation (DRDO) through its labs, Armament Research & Development Establishment (ARDE) and Defence Institute of High Altitude Research (DIHAR).

 

This agreement will allow Solarium Green Energy to manufacture and sell a solar thermal technology-based system for heating shelters in cold conditions within India. This technology, developed by DIHAR, has been tested in Ladakh over three winters and can replace conventional heating methods that rely on fossil fuels like diesel.  ALSO READ | Footwear stocks cheer GST rejig; Bata, Campus, Metro Brands rally up 10% 

The license is non-exclusive, valid for 10 years, and granted against a payment of ₹59,32,203 plus GST. Solarium Green Energy will pay no royalty on sales to the Indian Armed Forces or other government agencies, but a 2 per cent royalty on sales to the Indian market and exports (with DRDO approval). The company has already received some projects and expects more orders from the Indian Army in Ladakh. Solarium Green Energy believes this gives them a unique competitive advantage in a specialised market.

 

The company has also hired Anshul Sachdeva, a PhD holder with extensive research and development (R&D) experience in solar energy applications, to lead its technical research and execution for this project.