Praj Industries gained 0.86% to Rs 88.45 at 14:00 IST on BSE after Indian Oil Corporation inked memorandum of understanding with the company for development of 2G ethanol.
The announcement was made during market hours today, 14 September 2016.Meanwhile, the S&P BSE Sensex was down 6.59 points or 0.02% at 28,436.95.
More than usual volumes were witnessed on the counter. On BSE, so far 4.7 lakh shares were traded in the counter as against average daily volume of 2.96 lakh shares in the past one quarter. The stock hit a high of Rs 92.40 and a low of Rs 86.40 so far during the day. The stock had hit a 52-week high of Rs 105.15 on 4 July 2016. The stock had hit a 52-week low of Rs 70.40 on 26 February 2016. The stock had outperformed the market over the past one month till 12 September 2016, rising 2.93% compared with 0.71% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 2.51% as against Sensex's 6.45% rise.
The mid-cap company has equity capital of Rs 35.65 crore. Face value per share is Rs 2.
Indian Oil Corporation (IndianOil), India's flagship national oil company, has selected company as its technology partner for setting up multiple 2nd Generation (2G) bio?ethanol plants based on indigenously developed technology. IndianOil will be setting up three such 2G bio?ethanol plants.
Indian Oil, like other PSU oil marketing companies are blending biofuels in transportation fuels at the depot to bring down dependency on crude oil imports and to avail of the resultant economic and environmental benefits. In order to enhance ethanol availability in the country for blending with petrol, IndianOil is developing 2G ethanol production infrastructure using ligno?cellulosic biomasses as feedstock.
Praj is also providing assistance to IndianOil for achieving various milestones towards holistic development of these projects at various suitable locations across the country. Such 2G ethanol plants are based on indigenous technology and designs developed by Praj at their R&D center in Pune. Moreover, Praj will also supply plant & machinery and assist in operating and maintaining it.
Speaking about the collaboration, Pramod Chaudhari, Executive Chairman, Praj Industries said that the company has prepared itself to execute 2G ethanol projects worth over Rs 3000 crore in two?three years. He further added that Praj is offering end?to?end 2G 'Smart Bio?refinery' solutions globally. Its 'Smart Biorefinery' is capable of producing bio?ethanol and other co?products such as bio?CNG, power and a variety of biochemicals.
Praj Industries' consolidated net profit fell 52.5% to Rs 4.11 crore on 0.8% decline in total income to Rs 196.69 crore in Q1 June 2016 over Q1 June 2015.
Praj Industries offers innovative solutions for beverage alcohol and bioethanol plant, brewery, water & wastewater treatment plant, critical process equipment and systems and bioproducts.
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