Refex Renewables & Infrastructure Ltd arm to acquire controlling stake in Vyzag Bio

Refex Sustainable Solutions Private Limited (RSSPL), a wholly-owned subsidiary of Refex Renewables & Infrastructure Limited, on August 20, 2024, has entered into and executed an investment agreement for acquisition of controlling stake up to 51.02% of the total voting powers, from the existing promoters and investment by way of fresh equity infusion in Vyzag Bio-Energy Fuel Private Limited ("Vyzag Bio"), thereby, making this entity, a subsidiary of RSSPL and step-down subsidiary of the Company.

Vyzag Bio operates a Compressed Bio-Gas (CBG) plant producing biogas from segregated municipal waste, which involves processing organic material derived from municipal solid waste. The plant is designed with a capacity to output 850 kg of CBG per day, making it a significant contributor to green fuel production.

The acquisition of Vyzag Bio is a step forward towards strategic expansion and entering into CBG business. This acquisition would facilitate the Company, as a whole, to diversify its portfolio in the renewables sector and enter into new markets in CBG segment. In the thrust towards ESG, this business is eco-friendly and would result in reduction in carbon footprint.

The acquisition cost is cash consideration of approx. ₹2.90 Crore (Towards acquiring shares from existing promoters & fresh capital infusion).

The Company has an existing and already established bio-gas plant located within the property situated in Survey No. 314 of Kapulauppada Visakhapatnam belonging to the Greater Visakhapatnam Municipal Corporation (GVMC), with input capacity of 30 tonnes per day (TPD) of waste treatment ("Existing CBG Plant"). Moreover, the Company is also desirous of Expanding and Developing the Existing Plant with a further capacity of 70 TPD, by way of increasing the total plant input capacity to 100 TPD.

Shares of Refex Renewables & Infrastructure Ltd was last trading in BSE at Rs. 591.60 as compared to the previous close of Rs. 608.35. The total number of shares traded during the day was 5732 in over 148 trades.

The stock hit an intraday high of Rs. 623.95 and intraday low of 578.05. The net turnover during the day was Rs. 3375794.00.

Source : Equity Bulls

Keywords

RefexRenewablesandInfrastructure INE332F01018 RefexSustainableSolutions Acquisition VyzagBio