Techno Electric & Engineering completes allotment of Simran shares to IFC

Techno Electric & Engineering Company Ltd (TEECL) has completed allotment of shares in its subsidiary, Simran Wind Project Pvt Ltd. (Simran), to International Finance Corporation (IFC), Washington. The stake sale has been against the $5 million (Rs.22.50 crore) investment IFC made in the subsidiary.

Simran has issued 5625000 equity shares to IFC, the investment arm of the World Bank, by which TEECL holding in the subsidiary company has come down to 96.62%. IFC came in as a major investor through the 101.4 MW planned wind energy expansion, for a 3.38% stake in Simran Wind.

The deal values Simran at $148 million. The $133 million (Rs 600 crore) project is running within timelines & will be completed by mid-August. The expansion is being undertaken in Tamil Nadu in Tirunaveli and Coimbatore belt. Out of the 101.4 MW, 56.1 MW has been commissioned as on date.

Commenting on the development, Mr. PP Gupta, Managing Director, TEECL, said, "We are happy to close the deal with IFC today. IFC's focus on the Indian energy sector has undoubtedly benefitted us and we look forward for a long lasting and successful association with them in future."

The stock was trading at Rs.232.55, up by Rs.6.20 or 2.74%. The stock hit an intraday high of Rs.239.95 and low of Rs.226.30.

The total traded quantity was 0.51 lakhs compared to 2 week average of 0.18 lakhs.

Source : Equity Bulls

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